India markets regulator proposes easier access to riskier investment products for overseas investors

India's markets regulator, SEBI, has proposed reworking its framework for accredited investors so that more overseas participants can reach riskier products and strategies, Business Recorder reported. The proposal was unveiled on Thursday. Accredited investors are individuals or companies whose yearly earnings or net worth mark them as financially sophisticated.

The framework would extend beyond alternative investment funds (AIFs) to portfolio managers and specialised investment funds. Fund managers could decide whether an investor qualifies during onboarding, removing the need for certification by independent accreditation agencies. A new test would also count securities holdings, with individuals qualifying above 50 million rupees ($523,889.35) and companies at 200 million rupees.

SEBI also proposed extending accredited status to people residing outside India, which would do away with a separate accreditation step when they wish to invest in private market vehicles and specialised funds. The changes remain proposals for now.