Funds grapple with paucity of accredited investors

Sebi panel aims to ease investor accreditation process

- ANANYA GROVER

WHILE THE SECURITIES and Exchange Board of India (Sebi) is seeking to expand the pool of accredited investors (AI) by allowing the launch of accredited investor-only funds, industry participants remain sceptical, arguing that such products may not be feasible given the limited number of accredited investors and the lack of incentives in the current framework.

Ruchi Chojer, Sebi Executive Director, said at the CII National Summit on Alternative Investments on Thursday that the industry is looking closely at the growth of accredited investors. "While there are some positive developments, the base is very small, so even a two-times jump in six months seems trivial," she said.