The Securities and Exchange Board of India now allows alternative investment fund managers to certify investor accreditation status. This move aims to simplify the process for many. Managers can assess eligibility during onboarding or later. This new optional route works alongside the existing agency system to provide investors greater flexibility today.
The Securities and Exchange Board of India has introduced a new regulation allowing alternative investment fund managers to handle investor accreditation. This initiative is designed to streamline the accreditation process for investors looking for investment options. Managers are now authorized to evaluate eligibility during onboarding or at any stage of the scheme, providing greater flexibility.
Mumbai: The Securities and Exchange Board of India (Sebi) has allowed managers of alternative investment funds (AIFs), specialised investment funds and portfolio management services to independently determine and certify the accredited status of investors, to simplify the accreditation process.
The regulator said managers can assess an investor's eligibility either at the time of onboarding or during the tenure of a scheme. The accreditation would be valid for three years and will be recognised across managers belonging to the same corporate group. At present, investors could obtain accreditation through recognised accreditation agencies. Sebi said the existing agency led mechanism would continue, making manager-led accreditation an additional optional route.