BSE Administration and Supervision Limited (BASL) has become the first Accreditation Agency in India. The subsidiary of BSE received approval from SEBI on Friday.
The company can now take up the task of recognising and certifying Accredited Investors, a term used for investors who are assumed to have a better understanding of risks and returns associated with financial products.
"As an accreditation agency, BASL shall be responsible for verification of documents submitted by applicants for accreditation, issuance of accreditation certificate, maintaining data of accredited investors, verification of accreditation status, and any other responsibilities as may be specified by SEBI from time to time," BSE said in a press release.
In August 2021, SEBI introduced the concept of Accredited Investors, wherein a person or an entity will be issued a certificate as an accredited investor based on defined criteria. You can read the requirements here.
Accreditation agencies will be assigned the responsibility of verifying and issuing these certificates.
According to regulations, subsidiaries of stock exchanges and depositories with minimum 20 years of experience can apply to become an accreditation agency provided they also meet the following criteria:
1. Minimum net worth of Rs.200 crore
2. Presence in nation-wide terminals
3. Having investor grievance redressal mechanism in place along with investor service centres in at least 20 cities
