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SEBI moots concept of ‘accredited investor  

25th February, 2021 Economy

Context: Regulator SEBI sought comments on the proposal to introduce the concept of ‘accredited investors’ in the Indian securities market.

 

Details:

  • SEBI noted that accredited investors, also called qualified investors or professional investors, are those who have an understanding of various financial products and the risks and returns associated with them.
  • They are able to take informed decisions regarding their investments and are recognised by many securities and financial market regulators globally.
  • The accredited investor concept may offer benefits to investors and financial product/service providers, such as flexibility in minimum investment amount, flexibility and relaxation in regulatory requirements and access to products/ services offered exclusively to accredited investors.

 

Securities and Exchange Board of India:

  • The Securities and Exchange Board of India (SEBI) is the regulator of the securities and commodity market in India owned by the Government of India.
  • It was established on 12 April 1988 and given Statutory Powers on 30 January 1992 through the SEBI Act, 1992.

 

https://www.thehindu.com/todays-paper/tp-business/sebi-moots-concept-of-accredited-investor/article33928121.ece