CDSL Ventures Limited, a subsidiary of CDSL, has become the second Accreditation Agency in India. The company received approval from SEBI on Wednesday.
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.
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.
A subsidiary of BSE, BSE Administration and Supervision Limited (BASL), was the first company to receive accreditation agency licence. SEBI awarded licence to the firm in November 2021.
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
