SEBI proposes Rs 5 crore securities assets route for accredited investor status
Mumbai, Aug 13 (IANS) Markets regulator Securities and Exchange Board of India (SEBI) on Thursday proposed significant changes to its accredited investor framework, including a new eligibility route based on securities-market holdings, with the objective of expanding the pool of investors eligible to access alternative investment products.
Under the proposal, individuals holding securities-market assets worth at least Rs 5 crore would qualify as accredited investors irrespective of the current income or net-worth criteria.
For body corporates and trusts, other than family trusts, the regulator has proposed a minimum threshold of Rs 20 crore in securities-market assets.
According to SEBI, the move is intended to widen participation in Alternative Investment Funds (AIFs) and other investment products available to accredited investors.
An analysis conducted by the regulator suggests that nearly 3.7 lakh investors could become eligible under the proposed securities-assets route as of April 30, 2026.
The proposed expansion would mark a substantial increase from the current AIF investor base of about 96,000 investors, highlighting the potential for a broader and deeper participation in private market investments.
SEBI said the proposed threshold seeks to ensure that eligible investors possess adequate financial capacity and a demonstrated willingness to take investment risks.
The regulator’s assessment of securities-market holdings and derivatives market participation indicated that investors meeting the proposed asset criteria are likely to have the risk appetite required for sophisticated investment products.
At present, individuals, Hindu Undivided Families (HUFs), family trusts and sole proprietorships can obtain accredited investor status by satisfying prescribed income or net-worth requirements.
These include an annual income of at least Rs 2 crore, a net worth of at least Rs 7.5 crore with a minimum of Rs 3.75 crore in financial assets, or a combination of annual income of Rs 1 crore and net worth of Rs 5 crore, provided at least Rs 2.5 crore is held in financial assets.
In another major proposal, SEBI has suggested granting deemed accredited investor status to all Persons Resident Outside India under the Foreign Exchange Management Act (FEMA), including all Foreign Portfolio Investors (FPIs).
The move is expected to make it easier for overseas investors to access Indian investment products while expanding the pool of investors eligible for investment opportunities that offer greater flexibility.
The regulator has proposed that securities-market assets considered for accreditation include listed equities, debt securities, mutual funds, REITs, InvITs, AIF units, unlisted securities, overseas investments and futures positions.
–IANS
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