1. Knowledgeable and sophisticated.
If you are an HNI looking to diversify and gain access to
unique products like PMS, AIFs, or even customized strategies, becoming an
Accredited Investor can be a game-changer.
WHO IS AN ACCREDITED
INVESTOR?
An Accredited Investor is an individual or entity recognized by SEBI as financially
sophisticated enough to understand and handle high-value, complex
investments.
- They
get regulatory concessions (lower minimum investment, more flexible
terms).
- They
enjoy access to exclusive products (PMS, AIFs, Private Equity,
Venture Capital).
Think of it as a VIP pass to India’s premium
investment opportunities.
Eligibility Criteria
(Any ONE condition)
For Individuals / HUFs / Family Trusts / Sole Proprietorships
- Annual
Income: ≥ ₹2 crore
- Net
Worth: ≥ ₹7.5 crore (with at least ₹3.75 crore in financial assets)
- Combination:
Net worth ≥ ₹5 crore + Annual income ≥ ₹1 crore (with at
least ₹2.5 crore in financial assets)
For Partnership Firms
- Each
partner must independently meet eligibility.
For Trusts (non-family)
- Net
worth ≥ ₹50 crore
For Body Corporates
- Net
worth ≥ ₹50 crore
👉 Note: Primary
residence is not included in net worth.
👉
Joint holdings:
- Parent
+ child: At least one meets criteria.
- Spouses:
Combined net worth/income can be considered.
Step by Step Guide to
becoming an Accredited Investor
Step 1: Application
- Submit
your application to an Accreditation Agency (KYC Registration Agency like
CVL/NDML, or Fund Management Entity in IFSCA).
Step 2: Documentation
- PAN
+ identity & address proof
- ITR
/ Audited financial statements
- Net
worth certificate from a Chartered Accountant (not older than 6 months)
- Declarations
& authorization (for corporates/trusts)
Step 3: Accreditation Certificate
- If
eligible, you’ll receive a certificate with:
- Unique
accreditation number
- Accreditation
agency name
- PAN
of applicant
- Validity
period (2–3 years)
Validity of
Accreditation
- 2
Years → if criteria met for the previous 1 year
- 3
Years → if criteria met for the last 2 years
- 2
Years → for new entities meeting net worth but lacking past financials
Do read DONT RETIRE RICH and share your thoughts https://amzn.to/3cHUM6M/
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BENEFITS OF BECOMING AN ACCREDIT INVESTOR
- Exclusive Access
- You can invest inAlternative
Investment Funds (AIFs) with a lower ticket size than the standard minimum requirements
- Portfolio
Management Services (PMS) with relaxed norms
- Private
Equity & Venture Capital funds
- Lower Minimum Investment
- PMS:
No longer ₹50 lakh mandatory
- AIF:
No longer ₹1 crore mandatory
- GIFT
City AIF: No longer $1.5 lakh mandatory
- Regulatory Concessions
- Light-touch
regulation, more flexibility in strategies, direct negotiation with
providers.
- Customized Products
- Tailored
solutions designed for your risk-return profile.
- Flexibility to Exit
- You
can withdraw AI status if you want; old investments remain grandfathered.
- Higher Investor Cap
- AI
Funds under SEBI can have >1,000 investors (vs. 1,000 cap in
normal AIFs).
Should you as an HNI
Consider it?
For HNIs, Accredited Investor status isn’t just a badge —
it’s access, flexibility, and opportunity. You get:
- Lower
entry barriers into premium products
- Better
diversification without locking huge sums
- Chance
to negotiate unique deals tailored for you
Remember,
Becoming an Accredited Investor in India is a strategic
move for those serious about wealth creation beyond traditional products.
If you meet the eligibility, apply for accreditation and unlock a premium world
of investments.
As we have been always stressing upon on....wealth isn’t just about earning more, it’s about accessing smarter
opportunities. Accredited Investor status is your VIP ticket to that world.
#DontRetireRich
Srikanth Matrubai
https://t.me/joinchat/AAAAAELl4KUnaJzi-JJlDg/
