Capital market regulator SEBI on Tuesday said it has recognized NSDL Database Management Limited (NDML) as a recognized company for three years.
The entity, a wholly owned subsidiary of National Securities Depository Limited (NSDL), will issue a certificate of recognition to “recognized investors”. The Securities and Exchange Board of India (SEBI) said in a statement that the NDML has been recognized for three years from May 10, 2022.
Recognition renewal will be subject to satisfactory performance by NDML.
An investor recognition procedure and verification of an investor recognition status by investment providers – alternative investment funds, portfolio managers and, investment advisors – and other procedures will appear on the NSDL and NDML websites.
In August last year, the regulator outlined the rules for introducing a framework for recognized investors in the Indian securities market, and subsequently, it came up with the framework for implementing the framework for such investors.
As a rule, an individual will be identified as a recognized investor on the basis of net worth or income. Individuals, HUFs, family trusts, sole proprietorships, partnership firms, trusts and body corporates may be recognized based on the financial parameters specified by the regulator.
The accreditation agency will be responsible for verifying the documents submitted by the applicants, timely processing of applications and issuance of accreditation certificates, retaining the data of recognized investors and verification of accreditation status.
Previously, Sebi has recognized CDSL Ventures, a subsidiary of the Depository CDSL, as an accredited company, effective from February 1, 2022 for a period of three years.