Market regulator SEBI is currently studying the concept of "accredited investors" in jurisdictions such as the US, Australia and New Zealand, a top official said.
"We are going to work with redoubled vigour to introduce this (accredited investor). These are the kind of investors who can add a lot of value to our Alternative Investment Funds (AIF) industry," G Mahalingam, Wholetime Member, SEBI, said at IVCA's annual conclave in the capital.
SEBI was studying the practices in the US, Australia and New Zealand to see how an "accredited investor" is defined, the preferential treatment accorded to such investors and their risk propensity, Mahalingam added.
He said SEBI has been studying the concept for the last one-and-a-half months. "We need to chalk out a roadmap to welcome accredited investors", Mahalingam said.
An accredited investor refers to an investor who is financially sophisticated and has a reduced need for the protection provided by regulatory disclosure filings. Individuals, banks, finance companies and trusts can be considered as accredited investors.
Such investors can deal with securities not registered with financial authorities by satisfying one of the requirements of net worth or income, asset size or government status.