SEBI Clarified Minimum Investment for Specialised Investment Fund (SIF)

The capital market regulator, the Securities and Exchange Board of India (SEBI), recently, through a press release clarified the regulatory framework for Specialised Investment Funds (SIF) regarding minimum investment threshold.

SEBI Fixed Minimum ₹10 Lakh Investment

In a recent circular, SEBI announced that under the new regulations, investors must make a minimum investment of ₹10 lakh across all Specialised Investment Fund (SIF) strategies based on their Permanent Account Number (PAN).

This requirement, however, does not apply to the mandatory investments made by asset management companies (AMCs) on behalf of designated employees. SEBI also clarified that the rules concerning the maturity of securities in interval schemes will not be applicable to interval investment strategies under SIF.

SIFs and Options

Previously, investments were limited to securities that matured before the next transaction window. In cases where securities included put or call options, the option needed to be exercisable before the next transaction period commenced. SEBI confirmed that these updated provisions take effect immediately.

Conclusion

The regulatory framework for Specialized Investment Funds was introduced in February, aiming to fill the gap between mutual funds and Portfolio Management Services (PMS) by offering greater portfolio flexibility. Under this framework, investors are expected to invest a minimum of ₹10 lakh across all SIF strategies, with the exception of accredited investors.

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