SEBI clarifies regulatory framework for Specialized Investment Funds

Markets regulator SEBI on Wednesday clarified the regulatory framework for Specialized Investment Funds (SIF) regarding minimum investment threshold.

In its circular, SEBI said, "The new rule specifies that the minimum investment by an investor in all SIF strategies should be at least ₹10 lakh at the Permanent Account Number (PAN) level."

However, this rule does not apply to mandatory investments made by asset management companies (AMCs) for designated employees.

Additionally, SEBI said the rules regarding the maturity of securities in interval schemes will not apply to interval investment strategies under SIF.

Before this, investments were allowed only in securities that mature before the start of the next transaction period. If the securities have put or call options, the time left to exercise the put option must end before the next transaction period begins.

The new provisions come into force immediately, it added.

In February, SEBI came out with the regulatory framework for Specialized Investment Funds.

The SIF has been introduced to bridge the gap between mutual funds and PMS in terms of portfolio flexibility. Under the framework, investors are required to invest at least ₹10 lakh across all SIF strategies. This rule does not apply to accredited investors.