India markets regulator proposes easier access to riskier investment products for overseas investors

MUMBAI: India’s markets regulator on Thursday proposed revamping its framework for “accredited investors” to allow more overseas investors access to higher risk investment products and strategies.

Accredited investors are individuals or companies that are financially sophisticated based primarily on their annual income or net worth.

SEBI proposed widening the framework beyond alternative investment funds (AIFs) to portfolio managers and specialized investment funds.

The fund managers will be able to determine an investor’s accredited status as part of the onboarding process, replacing the current requirement for investors to be certified by independent accreditation agencies.

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SEBI has suggested adding another criterion for qualifying as an accredited investor based on an individual’s securities holdings. A person will qualify if they own more than 50 million rupees ($523,889.35) in securities. For corporates, the threshold is 200 million rupees.

SEBI has proposed extending the accredited investor status to people residing outside India, removing the need for a separate accreditation requirement when they look to invest in private markets and specialised funds.