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SEBI proposes easier, longer accreditation for India’s accredited investors
The regulator also plans manager-led accreditation during onboarding and a securities market assets route, keeping agency-based accreditation as an option.
India’s market regulator SEBI has proposed changes aimed at making accredited investor status easier and less costly to obtain, while expanding the number of investors eligible for the higher-risk category, according to a consultation paper discussed by LiveMint Markets.
Under the proposal, investment managers could deem an investor accredited as part of onboarding, extending how long accreditation remains valid. SEBI also introduced an alternative eligibility criterion based on securities-market assets, while preserving the existing pathway that goes through SEBI-recognized accreditation agencies.
For accreditation tied to a single manager, SEBI suggests validity could remain for three years from the date of the eligibility assessment. For investors onboarding with different managers, accreditation would be assessed again each time.
SEBI said the plan follows feedback that the current accreditation process is exhaustive, has limited validity, and carries high certification costs. Accreditation is currently handled by agencies such as NDML and CVL, with applicants submitting documents including PAN, Aadhaar, and income tax returns for the past three financial years, along with a chartered accountant’s certificate.