(General Studies Paper 3, Indian economy and issues)
Source- India Today
SEBI sought comments on the proposal to introduce the concept of accredited investors in the Indian securities market.
- Accredited investors also called qualified investors for professional investors
- They have an understanding of various financial products and the risk and return associated with them
- They are able to take informed decisions regarding their investments and are recognised by many securities and financial market regulator globally
- The accredited investors may offer benefits to investors and financial product provided such as
- flexibility in minimum investment amount
- flexibility in relaxation in regulatory requirements
- exercise to Products offered exclusively to accredited investors
- SEBI also said that an explanation may be carried out for accreditation agencies which may be the market infrastructure Institutions or their subsidiaries.
- Some investors shall not be required to obtain an accreditation certificate from the accreditation Agencies such as
- Central and state government
- developmental Agencies and funds set up by the government multilateral agencies
What is an Accredited investor
An accredited investor is an individual or a business entity that is allowed to trade securities that may not be registered with financial authorities.