Write short notes on the following: Accredited Investor and Large Value Accredited Investor.

CS Executive · Securities Laws and Capital Markets · PYQS · December 2022
Write short notes on the following: Accredited Investor and Large Value Accredited Investor.

Answer & Explanation:

Accredited Investor As per SEBI (Alternative Investment Funds) Regulations, 2012, an 'Accredited Investor' means any person who is granted a certificate of accreditation by an accreditation agency and who meets specific financial criteria: For an individual, Hindu Undivided Family (HUF), family trust, or sole proprietorship: Annual income of at least ₹2 crore; or Net worth of at least ₹7.5 crore, out of which not less than ₹3.75 crore is in the form of financial assets; or Annual income of at least ₹1 crore and minimum net worth of ₹5 crore, out of which not less than ₹2.5 crore is in the form of financial assets. For a body corporate: Net worth of at least ₹50 crore. For a trust (other than family trust): Net worth of at least ₹50 crore. For a partnership firm: Each partner independently meets the eligibility criteria for accreditation. Alternatively, as per SEBI (Portfolio Managers) Regulations, 2020, an 'Accredited Investor' means any person who fulfils the eligibility criteria as specified by the SEBI and is granted a certificate of accreditation by an accreditation agency. Large Value Accredited Investor As per SEBI (Alternative Investment Funds) Regulations, 2012: A 'Large Value Fund for Accredited Investors' means an Alternative Investment Fund or scheme of an Alternative Investment Fund in which each investor (other than the Manager, Sponsor, employees or directors of the Alternative Investment Fund or employees or directors of the Manager) is an accredited investor and invests not less than ₹70 crore . As per SEBI (Portfolio Managers) Regulations, 2020: A 'Large Value Accredited Investor' means an accredited investor who has entered into an agreement with the portfolio manager for a minimum investment amount of ₹10 crore .

Topics: Investment Avenues

Open in Interactive Practice Hub · Full Practice Hub · Chapter Weightage · More in this subject

Related Questions in this Topic