Sebi plans simpler rules for overseas investors seeking riskier investment products

Sebi has proposed changes to its accredited investor framework, which is aimed at investors who have the financial strength and knowledge to take on more complex investments. The new framework safeguards the exit point for the shareholders with a reliance on market priceThe Securities and Exchange Board of India (Sebi) is looking to make it easier for financially well-off overseas investors to access some of the country’s higher-risk investment products, reported Reuters.It has proposed changes to its accredited investor framework, which is aimed at investors who have the financial strength and knowledge to take on more complex investments.WHAT SEBI HAS PROPOSEDUnder the proposed framework, accredited investor rules could be expanded beyond Alternative Investment Funds (AIFs) to include portfolio managers and specialised investment funds.Sebi has also suggested making the accreditation process simpler. Instead of investors having to obtain certification from independent accreditation agencies, fund managers could determine whether an investor qualifies as accredited during the onboarding process. The regulator has proposed an additional way for individuals to qualify. A person could be considered an accredited investor if they hold securities worth more than Rs 5 crore. For companies, the proposed threshold is Rs 20 crore.OVERSEAS INVESTORS MAY BENEFITOne of the key changes is the proposal to extend accredited investor status to people living outside India. At present, overseas investors may face additional accreditation requirements when seeking access to private market investments and specialised funds. Sebi's proposal could remove this extra hurdle, making it easier for eligible overseas investors to participate in these products.The proposed changes are aimed at widening access while keeping the framework focused on financially sophisticated investors who can better understand and absorb the risks involved.The regulator has invited comments on the proposals before finalising the revised framework.- EndsPublished By: Jasmine anandPublished On: Aug 13, 2026 20:04 IST