SEBI to widen AIF investor pool, targets 4 lakh accredited investors
SEBI is planning to expand the pool of accredited investors for Alternative Investment Funds (AIFs) from 1 lakh to 4 lakh by easing eligibility criteria. The regulator aims to include more high-net-worth individuals and entities by recognizing assets with high growth potential.
Why it matters
This regulatory shift is intended to deepen India's capital markets and provide more investment avenues for wealthy individuals and institutional players.
The Securities and Exchange Board of India (SEBI) is likely to issue a circular shortly to expand the framework for alternative investment funds (AIFs), including provisions to recognise assets with high growth potential, said Sandip Pradhan, whole-time member of the market regulator.
“The revised framework is evolving, we already had a board meeting and very soon we will be coming out with a circular that we are also adding one more aspect, that is the assets of high growth or movement in the security market,” Mr. Pradhan said at the Confederation of Indian Industry (CII) Alternative Investments Summit in Mumbai.
The inclusion is expected to expand the pool of accredited investors in the AIF industry to 4 lakh from the current 1 lakh, he added.
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