SEBI’s New Rules: Easier Investing and Faster AIF Onboarding
SEBI Wants to Make Investing Easier and Faster
The Securities and Exchange Board of India (SEBI) has come up with two new ideas. These ideas aim to make investing easier and speed up the process for Alternative Investment Funds (AIFs). SEBI wants to hear what people think about these ideas by July 8.
More Agencies for Investor Accreditation
SEBI suggests that more agencies should be able to give investor accreditation. Right now, only certain agencies can do this.
- Currently, only two agencies can give accreditation: CDSL Ventures Ltd and NSDL Data Management Ltd.
- Letting more agencies do this could mean more competition and lower costs.
- There are already five registered agencies. Letting them do more could make the process faster and give people more choices.
Faster Onboarding for AIF Investors
SEBI also wants to let AIF managers onboard investors faster. They could do a quick check first, then get the full accreditation later.
- Investment funds can’t take money from these investors until they get the full accreditation.
- Any money promised before full accreditation won’t count towards the total fund.
- If the full accreditation isn’t done before the final close, the AIFs have to cancel the agreement and can’t take any money from the investor.
How Onboarding Works Now
Right now, investors need to get a certificate before they can be recognized as accredited. Their money only counts after they get this certificate.
