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Corporate Laws Central Ministry of Finance Securities and Exchange Board of India Act, 1992

Simplification of requirements for grant of accreditation to investors

18-Dec-2023 | SEBI/HO/AFD/PoD1/CIR/2023/189

SEBI has issued Simplification of requirements for grant of accreditation to investors to provide flexibility and facilitate ease of accreditation of investors by simplifying the requirements specified by SEBI vide Circular No. SEBI/HO/IMD/IMD-I/DF9/P/CIR/2021/620 dated August 26, 2021 on ''Modalities for implementation of the framework for Accredited Investors'' Key highlights:- 1. Accreditation Agencies, which are also KYC Registration Agencies (KRAs), may access Know Your Customer (KYC) documents of applicants available with them in capacity of KRA and may also access the same from the database of other KRAs, for the purpose of accreditation. 2. The Accreditation agencies shall grant accreditation solely based on the KYC and the financial information of the applicants. 3. To this effect, the accreditation certificate issued by accreditation agencies shall include the following disclaimer that the assessment of the applicant for accreditation is solely based on the applicants KYC and financial information and does not in any manner exempt market intermediaries and pooled investment vehicles from carrying out necessary due diligence of the accredited investors at the time of on-boarding them as their clients 4. The validity period of the accreditation certificate has been revised. 5. Accordingly, Annexure A (Modalities of accreditation) and Annexure B (List of documents to be submitted by applicant for accreditation) to the SEBI Circular No. SEBI/HO/IMD/IMDI/DF9/P/CIR/2021/620 dated August 26, 2021 have been revised and are given at Annexure 1 and Annexure 2 of this circular respectively

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