SEBI's proposed framework introduces manager-led accreditation with a ₹5 crore securities exposure threshold and three-year validity, streamlining access for sophisticated investors.
SEBI Proposes Manager-Led Accreditation for Investors
SEBI has introduced a proposal to revamp the accreditation process for investors, shifting to a manager-led model requiring a minimum securities exposure of ₹5 crore. The new framework includes three-year validity for accreditation status and provides deemed recognition for qualified overseas investors.
Under the proposal, portfolio managers and investment advisers would be empowered to accredit clients based on demonstrated market participation rather than static net worth thresholds. This aims to improve access to complex products while maintaining investor suitability standards.
Market intermediaries should anticipate revised due diligence responsibilities and updated onboarding protocols. The move aligns with SEBI’s broader push toward risk-based regulation and may reduce procedural burdens for institutional and high-net-worth investors.
