The Securities and Exchange Board of India through notification dated 3rd August, 2021 has issued the Securities and Exchange Board of India (Investment Advisers) (Third Amendment) Regulations, 2021. As per the amendment, an “accredited investor” shall mean any person who is granted a certificate of accreditation by an accreditation agency who:
(i) In case of an individual, Hindu Undivided Family, family trust or sole proprietorship has:
(A) annual income of at least two crore rupees; or
(B) net worth of at least seven crore fifty lakh rupees, out of which not less than three crores seventy-five lakh rupees is in the form of financial assets; or
(C) annual income of at least one crore rupees and minimum net worth of five crore rupees, out of which not less than two crore fifty lakh rupees is in the form of financial assets.
(ii) In case of a body corporate, has net worth of at least fifty crore rupees;
(iii) In case of a trust other than family trust, has net worth of at least fifty crore rupees;
(iv) In case of a partnership firm set up under the Indian Partnership Act, 1932, each partner independently meets the eligibility criteria for accreditation.
