The International Financial Services Centres Authority (IFSCA) on November 23, 2023, issued a Consultation Paper on the Regulatory Framework for Accredited Investors in IFSC
The following framework has been stated namely: -
• It has specified the eligibility criteria for Accredited Investors as follows namely: -
(i) Individuals, Sole Proprietorships, One Person Companies, and any other legal form comprising of only a natural person, which meets any of the following criteria:
(a) Income Criteria – Annual gross income in the preceding financial year not less than USD 200,000, with a reasonable expectation of reaching a similar income level in the current financial year.
(b) Net Assets Criteria - Net Assets not less than USD 1 Million, wherein the value of the primary residence is not included, and at least USD 500,000 worth of net assets comprise financial assets.
(ii) Hindu Undivided Families (HUFs) in India and similar such family structures in India and foreign jurisdictions, which are created solely for the benefit of the members of a single family, which meet the eligibility criteria specified
(iii) Partnership firms, wherein each partner independently meets the applicable eligibility criteria of an Accredited Investor
(iv) Body corporates
(v) Trusts
• It has mentioned the responsibilities of the Regulated namely: -
(i) They shall lay down adequate procedures and internal policy for verifying and periodically reviewing the eligibility of such investors.
(ii) They take all reasonable steps to verify that such investor meets or continues to meet the eligibility criteria as specified
(iii) They keep and maintain the records of verification and review of such investor for the entire duration of the relationship with such investor and thereafter in electronic retrieval form for a minimum period of ten years
• Comments and suggestions from the public are invited on the proposed regulatory framework for Accredited Investors in IFSC
• Comments may be sent by email to Mr. Aditya Sarda, Deputy General Manager, IFSCA at [email protected] with a copy to Mr. Pavan Shah, General Manager, IFSCA at [email protected] latest by December 07, 2023.
• The comments may be provided as per the format attached in MS Word or MS Excel o
