Accredited Investor

  (General Studies Paper 3, Indian economy  and issues)

Source- India Today

 Context

SEBI sought comments on the proposal to introduce the concept of accredited investors in the Indian securities market.

 key points

  • 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.

                                             -Khyati Khare

 

Daily Current Affairs 26 February 2021.

Khyati Khare

Plutus IAS Current Affairs Team

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