Securities and Exchange Board of India (SEBI) has recently released a consultation paper to solicit comments from public on the proposal to introduce the concept of “Accredited Investors” in the Indian securities market.
Accredited Investors are considered to be informed investors on the premise that their financial capacity (generally ascertained from income and/ or net worth) enables them to hire expert managers/ advisors as required. Certain jurisdictions have also attempted to consider the knowledge and investment experience of the investor as one of the qualifying criteria to be an Accredited Investor, alongside financial capacity. In the jurisdictions which recognize Accredited Investors, these investors are given certain relaxation with respect to disclosure requirements, filing of offer document/ prospectus etc., and flexibility in respect of investor reporting.
Based on feedback from market participants, it is felt there is a need to introduce the concept of Accredited Investors in the Indian securities market as well. The consultation paper provides a framework for introduction of concept of Accredited Investors. The consultation paper is attached for your reference.
In this regard, we request you to send your inputs/ views on the proposed framework as well as other ways in which this concept may be utilized in the Indian securities market and implications. Please share your inputs with email@example.com and firstname.lastname@example.org before March 9, 2021 in the following format:
Particulars of the proposal/ Other issues
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