Modalities for implementation of the framework for Accredited Investors

The Securities Exchange Board of India through circular dated August 26, 2021 has issued modalities for implementation of the framework for Accredited Investors. As per the framework, AIs may avail flexibility in minimum investment amount(“Lower ticket size”) or concessions from specific regulatory requirements applicable to investment products. The following entities are eligible to carry out the accreditation process;

A. Subsidiaries of recognized Stock Exchanges, provided the Stock Exchange meets the following criteria:

1. Minimum 20 years presence in Indian securities market,
2. Minimum net worth of INR200 crores,
3. Presence of nation-wide terminals,
4. Having Investor grievance redress mechanisms in place, including arbitration,
5. Presence of Investor Service Centers (ISCs) in at least 20 cities, and
6. Any other criteria as specified by SEBI from time to time.

B. Subsidiaries of Depositories

Eligible subsidiaries shall make an application to SEBI through the concerned Stock Exchange or Depository, for recognition as an Accreditation Agency within 3 weeks from the date of the Circular.