SEBI Grade A Current Affairs — 8 November 2026

SEBI has eased accredited investor norms for participants in Alternative Investment Funds, Specialised Investment Funds, and Portfolio Management Services. Two new eligibility criteria based on securities market exposure — ₹5 crore and ₹20 crore thresholds — have been introduced alongside existing income and net-worth tests. Accreditation will now be valid for three years. The move widens access to sophisticated investment products by allowing market-experienced investors to qualify without meeting only traditional wealth benchmarks.

An accredited investor is a category of sophisticated investor deemed capable of bearing higher financial risk and understanding complex products, and therefore granted access to lightly regulated instruments like AIFs (minimum ₹1 crore commitment), PMS (minimum ₹50 lakh), and the newly created SIF (Specialised Investment Fund). Previously, accreditation relied primarily on income or net-worth criteria — for example, an individual needed annual income above ₹2 crore or net worth above ₹7.5 crore (with at least ₹3.75 crore in financial assets).

SEBI's new circular introduces a parallel track: investors with demonstrated exposure to securities markets — ₹5 crore for certain categories and ₹20 crore for others — can now qualify as accredited investors. This is significant because it recognises market participation and experience as a proxy for sophistication, not just accumulated wealth.

The three-year validity period for accreditation adds a fresh regulatory parameter — after three years, investors must reapply, ensuring the status reflects current financial standing rather than a one-time snapshot.

For SEBI Grade A aspirants, this circular sits at the intersection of investor protection and market access — a core regulatory tension SEBI navigates. Knowing the precise thresholds (₹5 crore, ₹20 crore), the instruments covered (AIF, SIF, PMS), the validity window (3 years), and the accreditation body framework is essential, as the examiner has consistently tested exact numbers and institutional mechanics in this domain.

On 20 December 2021, the OECD/G20 Inclusive Framework released Model Global Anti-Base Erosion (GloBE) Rules under Pillar Two of BEPS 2.0. These rules establish a 15% global minimum corporate tax rate for multinational enterprises with annual revenues exceeding €750 million. Pillar One reallocates taxing rights to market jurisdictions. Together, the two pillars aim to curb profit-shifting to low-tax havens and ensure large corporations pay a minimum level of tax wherever they operate.

BEPS 2.0 is the OECD/G20 response to base erosion and profit shifting — the practice by which multinationals legally move profits to low-tax jurisdictions, reducing tax revenue for countries where actual economic activity occurs.

Pillar One addresses where tax is paid. It reallocates a portion of profits (Amount A) of the largest and most profitable multinationals (revenue >€20 billion, profitability >10%) to market jurisdictions — countries where consumers are located — regardless of physical presence. This is especially significant for digital economy companies like Google and Meta that generate revenue from a country without having a taxable presence there.

Pillar Two addresses how much tax is paid. The GloBE rules introduce an effective minimum tax rate of 15% via two interlocking domestic rules: the Income Inclusion Rule (IIR), where a parent company pays a top-up tax if a subsidiary is taxed below 15%, and the Undertaxed Profits Rule (UTPR), a backstop mechanism. A third rule — the Subject to Tax Rule (STTR) — applies to certain payments between related parties.

For India, BEPS 2.0 is significant on multiple fronts. India is a member of the Inclusive Framework, stands to gain from Pillar One's reallocation of digital profits, and has already enacted a Qualified Domestic Minimum Top-Up Tax (QDMTT) to retain revenue domestically. India's Equalisation Levy (digital tax) is expected to be withdrawn as part of the Pillar One deal. These dynamics sit at the intersection of international taxation, fiscal sovereignty, and G20 economic diplomacy — all high-frequency UPSC themes.