India’s securities regulator plans a broad overhaul of accredited investor criteria, easing access for foreign investors and expanding the scope of private market investments, signalling a shift towards a more modernised investment regime.
India’s markets regulator has proposed a broader overhaul of its accredited investor rules, a move that would make it easier for overseas investors to access higher-risk products and strategies in the country’s private markets, according to Business Recorder and other Indian business publications. The Securities and Exchange Board of India, or SEBI, wants the framework to extend beyond alternative investment funds to portfolio managers and specialised investment funds, while allowing fund houses to assess accredited status during client onboarding rather than relying on separate certification agencies.
Under the plan, an investor could also qualify through securities holdings, not just income or net worth. Business Recorder said SEBI has suggested thresholds of more than 50 million rupees for individuals and 200 million rupees for corporates. The regulator has also proposed extending accredited status to people living outside India, removing a separate hurdle for foreign investors seeking exposure to private markets and specialised funds.
The proposal comes as SEBI is also considering wider changes to portfolio management rules. Livemint and Business Standard have reported that the regulator wants to introduce a mutual fund-only portfolio management service, or MF-PMS, with a lower 25 lakh rupee entry point than the traditional 50 lakh rupee minimum. Business Standard also reported that SEBI is weighing broader access for portfolio managers to overseas securities, unlisted debt and yet-to-be-listed instruments, as well as direct market access for a wider set of investors, reflecting a push to modernise India’s investment regime.
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