Sebi Unveils New Framework for Specialized Investment Funds

The Securities and Exchange Board of India (Sebi) has clarified the regulatory framework for Specialized Investment Funds, setting a minimum investment threshold of Rs 10 lakh per investor at the PAN level. The rules, however, exempt mandatory investments by AMCs for designated employees. New provisions are effective immediately.

The Securities and Exchange Board of India (Sebi) has taken a decisive step by clarifying the regulations for Specialized Investment Funds (SIF), which include setting a minimum investment threshold aimed at streamlining investor participation levels.

According to the newly issued Sebi circular, investors in all SIF strategies are now required to make a minimum investment of Rs 10 lakh at the Permanent Account Number (PAN) level. Importantly, this stipulation does not apply to mandatory investments by asset management companies for their designated employees.

The updated regulations also specify that certain rules regarding the maturity of securities in interval schemes will not apply to SIF interval investment strategies. Previous constraints limited investments to securities maturing before the next transaction period. The amendments are effective immediately, marking a significant move to enhance portfolio flexibility for investors.

(With inputs from agencies.)