Regulator SEBI on Wednesday sought feedback on the proposal to introduce the concept of ‘accredited traders’ within the Indian securities market. The feedback will be despatched to the regulator in a prescribed format newest by March 18, it stated in a session paper.
SEBI famous that accredited traders, additionally referred to as certified traders or skilled traders, are those that have an understanding of numerous monetary merchandise and the dangers and returns related to them. They are in a position to take knowledgeable choices concerning their investments and are recognised by many securities and monetary market regulators globally.
The accredited investor concept might provide advantages to traders and monetary product/service suppliers, reminiscent of flexibility in minimal funding quantity, flexibility and rest in regulatory necessities and entry to merchandise/ companies provided completely to accredited traders.
SEBI stated the accreditation as soon as granted shall be legitimate for a yr. It additionally stated the accreditation could also be carried out through ‘Accreditation Agencies’ which would be the market infrastructure establishments or their subsidiaries.