Sebi to introduce framework for accredited investors

Listing out benefits linked to accreditation, Sebi said accredited investors should have flexibility to participate in investment products with an investment amount lesser than the minimum amount mandated in the Alternative Investment Funds (AIF) Regulations and Portfolio Managers (PMS) Regulations. AIF for accredited investors where each investor invests minimum investment amount of Rs 70 crores may avail relaxation from regulatory requirements such as portfolio diversification norms, conditions for launch of schemes and extension of tenure of the AIF. Accredited investors with minimum investment of Rs 10 crore with registered PMS provider, may avail relaxation from regulatory requirement with respect to investment in unlisted securities and can enter into bilaterally negotiated agreements with the PMS provider. Accredited investors who are clients of investment advisers will have the flexibility to determine the limits and modes of fees payable to the Investment Adviser through bilaterally negotiated contractual terms. Earlier, the Securities and Exchange Board of India (Sebi) came out with a consultation paper in this regard in February.