Mumbai, Aug 9
The Securities and Exchange Board of India (SEBI) has proposed a distinct alternative investment fund (AIF) scheme that would admit only "accredited investors".
Such specialised AIF schemes can benefit from "a lighter-touch regulatory framework than a regular AIF," a release from SEBI said.
Accredited investors are persons or businesses who meet SEBI-certified wealth, net worth and income criteria. For sole proprietorships, HUFs, and Family Trusts, a minimum annual income of Rs 2 crore or at least Rs 7.5 crore net worth, with Rs 3.75 crore in financial assets, qualifies them for accredited investor status.
A SEBI-recognised agency, like a stock exchange or depository subsidiary (CDSL Ventures Limited), grants accreditation based on these criteria, financial assets, and investment experience.
"In case of an accredited investors-only fund, the responsibilities and obligations cast on the trustee of an Alternative Investment Fund in terms of provisions of these regulations shall be carried out solely by the manager of the Alternative Investment Fund," the markets regulator said.
While the current count of accredited investors is modest, SEBI expects growth due to recent regulatory changes. Sebi is also considering several proposals to increase the number of accreditation agencies, foster more competition, and further simplify the process of accreditation