According to media reports, SEBI has issued a consultation paper to introduce the concept of accredited investors in India. Accredited investors have a better understanding of risks and returns associated with financial products. They have greater loss absorption ability owing to higher financial capacity. Accordingly, they can request asset management companies to customize their offerings based on their specific needs. The market regulator aims to provide a relaxed regulatory framework for sophisticated investors and introduce products designed to meet investor-specific risk profile.