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SEBI has started putting in place the building blocks for a new class of investors – accredited investors (AIs), who are mainly those with high net worth or income. Individuals, HUFs, family trusts, sole proprietorships, partnership firms, trusts and body corporates can get accreditation based on financial parameters.
On Tuesday, the regulator issued a framework for charges and fee structure of AIs who can also act as advisors. SEBI has allowed accredited investors to become fund managers and portfolio managers.
SEBI has said the limits and modes of fees payable to the AI will be governed through bilaterally negotiated contractual terms. In case of large value accredited investors (minimum investment amount of ₹10 crore), the quantum and manner of exit load applicable to the client of the portfolio manager will be governed through bilaterally negotiated contractual terms, SEBI said.
Subsidiaries of depositories and stock exchanges can issue an accreditation certificate to AIs.
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