ICICI Prudential AMC Announced Resumption of Subscription in ICICI Prudential Smallcap Fund Effective January 23, 2026

ICICI Prudential Asset Management Company Ltd, India’s second-largest asset manager, on Wednesday (January 21) announced the resumption of subscriptions in the ICICI Prudential Smallcap Fund, effective January 23, 2026, following approval from ICICI Prudential Trust Ltd.

Impact of Resumption

With this decision, all PAN-level investment restrictions have been lifted. Investors can now make fresh or additional investments through lump-sum purchases, switch-ins from other schemes, and systematic routes such as systematic investment plans (SIPs) and systematic transfer plans (STPs).

The AMC clarified that all other terms and conditions outlined in the Scheme Information Document (SID), Key Information Memorandum (KIM), and earlier addenda will remain unchanged, unless explicitly stated in this notice-cum-addendum, which forms an integral part of the SID and KIM.

Suspension Imposed in March 2024

The move marks a reversal of the restrictions imposed in March 2024, when ICICI Prudential Mutual Fund had temporarily halted fresh lump-sum investments and switch-ins into its small-cap and mid-cap schemes. The suspension, effective March 14, 2024, was aimed at moderating inflows amid elevated valuations in the mid- and small-cap segments, which had significantly outperformed large-cap stocks at the time.

The curbs followed guidance from the Securities and Exchange Board of India (SEBI), which had directed mutual funds to conduct stress tests on their mid-cap and small-cap schemes to assess risks associated with liquidity and market volatility.

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Former SEBI chairperson Madhabi Puri Buch had also indicated a review of investment norms for these categories, citing concerns over potential market overheating driven by the surge in investor interest in mid- and small-cap equities.

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