Markets regulator Sebi on Thursday decided to widen the pool of accredited investors by allowing individuals with securities market assets of Rs 5 crore and body corporates with such assets of Rs 20 crore to qualify, alongside the existing income and net-worth criteria. Additionally, the Sebi board approved a common advertisement code for market intermediaries, including stock brokers, mutual fund houses, investment advisors and portfolio managers, whereby allowing them to engage celebrities for promoting their brands or entity name, while prohibiting endorsements of specific products or services.

Also, the board approved a fourth Settlement Scheme, 2026, for entities facing proceedings related to non-genuine trades in illiquid stock options on the BSE between April 1, 2014, and September 30, 2015. The scheme will provide eligible entities an opportunity to settle pending enforcement proceedings related to such trades.

Regarding accredited investors, Sebi has simplified the accreditation process and is expanding the pool of sophisticated investors eligible to participate in alternative investment funds (AIFs) and other investment products. Sebi said the new securities market exposure criterion will also apply to HUFs, family trusts and sole proprietorships for the Rs 5-crore threshold, while the Rs 20-crore criterion will cover body corporates and other trusts.

Earlier Sebi, in its consultation paper, stated the securities-market exposure criterion alone has the potential to expand the pool of eligible accredited investors to around 4 lakh, compared with the existing AIF investor base of around 1 lakh. The board also approved an additional, optional manager-led accreditation route.

Managers of AIFs, asset management companies offering specialised investment funds (SIFs) and Sebi-registered portfolio managers will be permitted to accredit investors, while the existing route through accreditation agencies will continue. Sebi said persons resident outside India, including foreign portfolio investors, will be deemed to be accredited investors.

Limited Liability Partnerships will also be eligible for accreditation if each partner is an accredited investor. Accreditation through either route will be valid for three years.

The manager-led accreditation will be portable across AIF, SIF and portfolio management services products within the same group, subject to safeguards. Sebi said the measures are expected to simplify accreditation, reduce duplication in verification and facilitate greater mobilisation of capital from sophisticated investors into alternative investment products.