SEBI seeks debate on the concept of ‘accredited investor’ Moneylife Digital Team 1 The capital market regulator, Securities and Exchange Board of India, has floated a consultation paper to introduce the concept of ‘accredited investors’ in the Indian securities market and sought public comments on the same. The comments can be sent to the regulator latest by 18 March 2021. According to SEBI, the new regulatory framework is expected to help in designing more customised investment products, reduced compliance, better risk labeling (product classification) and increased transparency.
Accredited investors or qualified investors or professional investors, are considered to be informed investors on the assumption that their financial capacity (generally ascertained from income and/ or net worth) enables them to hire expert managers/ advisors as required. They already have an understanding of various financial products and the risks and returns associated with them and hence are able to take informed decisions regarding their investments. This class of investors are recognised by many market regulators globally.