Checklist for Accredited Investors

Download Checklist for accreditation in case of Individual/HUF (.docx)

1. Copy of PAN Card.
2. Copy of Aadhaar Card or Copy of Valid Passport.
3. Income tax return of last 3 financial years
4. Certificate from practicing chartered accountant stating total gross income (annually) and liquid net worth as on date of application. Working of Liquid Net worth shall be given as an Annexure to the certificate. The same shall be calculated as follows:
   Capital + Free Reserves
   Less: non-allowable assets * Explanation – Includes debts/advances overdue for more than three months or given to associates and to related parties.
   1. Fixed assets
   2. Pledged Securities
   3. Non-allowable securities (unlisted securities)
   4. Doubtful debts and advances*
   5. Prepaid expenses, losses
   6. Intangible assets
   7. 30% value of marketable securities
5. Where the individual has been debarred or disciplinary action has been taken against investor by SEBI, RBI or any other regulatory body, then the debarment period or disciplinary action should be over. In case of an Non Resident Indian, he or she shall confirm that he or she has not been restricted from accessing securities market by the country of jurisdiction where he or she resides.
   Declaration from investor which will state that:
   1. he/she/it, is not a wilful defaulter as defined under Regulation 2(1)(III) of SEBI (ICDR) Regulations, 2018.
   2. he/she/it, is not a fugitive economic offender as defined under Regulation 2(1)(p) of SEBI (ICDR) Regulations, 2018.
   3. he/she/it, is not in violation of Regulation 24 of SEBI (Delisting of Equity Shares) Regulation, 2009.
   4. he/she/it, is not in violation of the restrictions imposed by SEBI under SEBI circular no. SEBI/HO/ MRD/DSA/CIR/P/2017/92 dated August 01, 2017.
   5. he/she/it, is in compliance with RBI regulations, if applicable.
   6. that the investment in the Companies are in compliance with RBI norms, if applicable.
   7. that the submissions made to the Exchange/Depository are true and correct and if found incorrect, the Exchange/Depository reserves the right to reject the application and take necessary action.

that in case of ineligibility due to change in the financial status of the Accredited Investor, he/she/it shall inform the Stock Exchange/Depository of such ineligibility.

*Calculation of Liquid Networth

Liquid Networth for the purpose of eligibility criteria for AIs shall be calculated as follows:

1. Capital + Free Reserves

   Less:

2.  Non-allowable assets which includes
   1. Fixed assets
   2. Pledged Securities
   3. Non-allowable securities (unlisted securities)
   4. Doubtful debts and advances#
   5. Prepaid expenses, losses
   6. Intangible assets
   7. 30% value of marketable securities

# Includes debts/advances overdue for more than three months or given to associates and to related parties.