SEBI grants recognition to NSDL Database Management as accreditation agency for 3 yrs

Capital markets regulator Sebi on Tuesday said it has granted recognition to NSDL Database Management Ltd (NDML) as an accreditation agency for three years.

The entity is a wholly-owned subsidiary of National Securities Depository Ltd (NSDL), The agency will issue accreditation certificate to ''accredited investors''. The recognition to NDML has been granted for a period of three years with effect from May 10, 2022, the Securities and Exchange Board of India (Sebi) said in a statement.

The renewal of the recognition would be subject to satisfactory performance by NDML.

The procedure for accreditation of an investor and verification of accreditation status of an investor by investment providers -- Alternative Investment Funds, Portfolio Managers and, Investment Advisers -- and other modalities will be displayed on the websites of NSDL and NDML.

In August last year, the regulator notified the norms for introducing a framework for accredited investors in the Indian securities market and subsequently, it came out with modalities for implementation of the framework for such investors.

Under the norms, a person will be identified as an accredited investor on the basis of net worth or income. Individuals, HUFs, family trusts, sole proprietorships, partnership firms, trusts and body corporates can get accreditation based on financial parameters specified by the regulator.

The accreditation agency will be responsible for verification of documents submitted by applicants, timely processing of applications and issuance of accreditation certificate, maintaining data of accredited investors and verification of accreditation status.

Earlier, Sebi had granted recognition to CDSL Ventures, a wholly-owned subsidiary of depository CDSL, as an accreditation agency for a period of three years with effect from February 1, 2022.