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Source: Livemint
What is the News?
Securities and Exchange Board of India(SEBI) has come up with a framework for creating so-called accredited investors.
What are Accredited Investors?
- Accredited Investors are those investors who may be considered to be well-informed or well-advised about investment products.
Eligibility to become Accredited Investor: Anyone is eligible to become an accredited investor provided the person satisfies at least one of three conditions:
- One, the investor has a net worth of ₹7.5crore, with at least half of it in financial assets.
- Two, the investor has an annual income greater than ₹2 crores.
- Three, the individual has an annual income greater than ₹1 crore and net worth greater than ₹5 crores, with at least half this amount in financial assets.
Note: For trusts and body corporates, the net worth threshold is ₹50 crore.
Benefits of becoming an accredited investor:
- Accredited investors get relaxation in the minimum amount to be invested in the Alternative Investment Funds(AIF) Regulations and Portfolio Managers(PMS) Regulations.
- Investment advisory fees can be set mutually without any regulatory caps.
