Many privileges of accredited investors in India: Know the SEBI rules and eligibility criteria

Let's understand what are the privileges of accredited investors in India.

1. An accredited investor is an individual, HUF, family trust, or institution who is considered to have the financial knowledge and means to participate in more complex investment products.

2. Individuals and HUFs who have an annual income of Rs.2 crore or more, or net worth of Rs.7.5 crore or more, out of which at least Rs.3.75 crore is in financial assets, or a combination of annual income of Rs.1 crore and net worth of Rs.5 crore, with at least Rs.2.5 crore in financial assets are considered accredited investors.


3. For corporates/trusts/family offices to qualify, their net worth should be of Rs.50 crore or more.

4. These investors have access to customised investment products with flexible terms and relaxed investment limits in certain AIFs and PMS schemes.

5. Becoming an accredited investor is voluntary and requires to submit proof of income/net worth to Sebi-registered accreditation agency.

Content on this page is courtesy Centre for Investment Education and Learning (CIEL).
Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.