TMI BlogModalities for implementation of the framework for Accredited InvestorsX X X X Extracts X X X X X X X X Extracts X X X X ..... odalities of accreditation are provided in Annexure A . 3. The framework for AIs may be made available on the respective websites. B. Accreditation Agency 4. Persons desirous of being reckoned as AIs shall approach an Accreditation Agency for accreditation. Accreditation Agencies shall be responsible for: (a) verification of documents submitted by applicants for accreditation, (b) timely processing of applications for accreditation and issuance of accreditation certificate, (c) maintaining data of accredited investors, (d) verification of accreditation status, (e) maintaining confidentiality of investor information at all times, and (f) any other responsibilities as may be specified by SEBI from time to time. 5. Accreditation Agencies shall have the requisite infrastructure including systems and manpower to fulfill their responsibilities as specified under Para 4. 6. The following entities are eligible to carry out the accreditation process: (i) Subsidiaries of recognized Stock Exchanges, provided the Stock Exchange meets the following criteria: (a) minimum 20 years presence in Indian securities market, (b) minimum networth of INR 200 cr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the individual, Karta of HUF and the Sole Proprietor respectively, shall not be considered for calculation of net worth. 1.4. In case of investments held jointly by more than one individual, the following conditions shall apply for eligibility as AI: (i) Where the joint holders are parent(s) child(ren), at least one person should independently fulfill the eligibility criteria for AI. (ii) Where the joint holders are spouses, their combined income/ net worth should meet the eligibility criteria for AI. 1.5. For the purpose of reckoning eligibility criteria, net worth of Body Corporates shall be calculated as under: Net worth = (Capital + free reserves) (Accumulated losses + deferred expenditure not written off) 1.6. For the purpose of reckoning eligibility criteria, net worth of Trusts shall be calculated as under: Net worth = (Book value of all assets, other than intangible assets) (Book value of total liabilities) 1.7. For Body Corporates and Trusts, eligibility criteria for accreditation shall be considered on the basis of the following: (a) Financial information as per statutory audit; or (b) Financial information as per audit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gulatory oversight as over investment products meant for investors other than AI. 4.2.The Investment provider shall independently verify the status of accreditation of the prospective investor from the concerned Accreditation Agency. Further, investment providers may obtain additional undertakings from prospective investors, provided they do not dilute or contravene the undertakings in terms of Para 4.1 above. 4.3.Prior to entering into a client agreement with an AI, the investment provider shall disclose to the AI, details of regulatory concessions available for the proposed investment, and the relevant conditions applicable under the AI framework. 4.4.The client agreement shall, inter-alia , provide the following: (i) details of regulatory concessions agreed upon between the investor and the investment provider, and the conditions for availing the same, and (ii) consequences, if any, in the event of the investor becoming ineligible to be an AI during the tenure of the said agreement. 5. Flexibility to investors to withdraw Consent 5.1.Investors shall have the flexibility to withdraw their Consent and discontinue availing benefits o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (as applicable) (a) Proof of ready reckoner rate applicable to real estate assets considered for calculation of net worth. (b) Copy of demat account statement (c) Any other document as required. Undertakings Declaration from Applicant that: (a) The Applicant is not a wilful defaulter. (b) The Applicant is not a fugitive economic offender. (c) The Applicant is not debarred from the securities market as on the date of application. (d) In case of a Non Resident Indian or foreign investor, confirmation that he or she has not been restricted from accessing securities market by the country of jurisdiction where he or she resides. (e) The submissions made to the Accreditation Agency are true and correct and if found incorrect, the Accreditation Agency reserves the right to reject the application or withdraw the accreditation, as applicable. Other Documents Any other document as specified by the Accreditation Agency In case of Body Corporates Authorization to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provided shall determine the validity of the accreditation) (a) Copies of Income tax return(s) of one or three financial years, preceding the date of application (b) Copies of audited Financial Statements of one or three financial years preceding the date of application. (c) Certificate from practicing chartered accountant stating net worth as on March 31 of one or three financial years preceding the date of application. (Working of Net worth to be given as Annexure to the certificate) (d) Audited financial statements prepared by the statutory auditor for the current date/ period (optional) (e) Certificate from practicing chartered accountant stating net worth as on the date of application. ( optional ) Proof of basis of valuation of assets (a) Statement of assets and liabilities of the Trust for preceding one year or three years, depending on desired validity of accreditation (b) Proof of ready reckoner rate applicable to real estate assets considered for calculation of net worth. (c) Copy of demat account statement (d) Any other document as re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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