Sebi introduces accredited investors concept in Indian securities market

Markets regulator Sebi has introduced the concept of 'accredited investors' in the Indian securities market, a move expected to open up a new channel for raising funds. A person or entity will be identified as an accredited investor on the basis of net worth or income.
Individuals, HUFs, family trusts, sole proprietorships, partnership firms, trusts and body corporates can get accreditation based on financial parameters specified by the regulator, according to a notification dated August 3. The regulator said that subsidiaries of depositories and stock exchanges will issue an accreditation certificate to such investors.