What are accredited investors? The eligibility criteria and benefits

Currently, Indian markets have the concept of qualified institutional buyers (QIBs), which include mutual funds, insurance companies or foreign portfolio investors

Securities regulator Sebi has proposed to introduce the concept of ‘accredited investor’ for the domestic market. We try to understand the benefits of the same:

What is an accredited investor?

Globally, some jurisdictions have adopted the concept of accredited investors, also referred to as qualified investors or professional investors. This qualification is granted to investors who can demonstrate their financial prowess, have better understanding of various financial products and the risk associated with them and are thereby able to take informed decisions and have the capacity to absorb losses. Currently, the Indian markets have the concept of qualified institutional buyers