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SEBI Introduces New Asset Class "SIF" (Specialised Investment Fund) with a Minimum Investment Requirement of Rs 10 Lakh.

Banking & Finance | Dated: 25 Dec 2024

In December 2024, the Securities and Exchange Board of India (SEBI) notified a new asset class "Specialised Investment Fund (SIF)" between Portfolio Management Services (PMS) and Mutual Funds (MFs). As per the SEBI directions, the new asset class will accept investments of Rs 10 lakh or above across all investment strategies. However, accredited investors are exempted from the requirement of minimum investment amount.

🎯 Key Highlights:

  • - The primary objective of introducing this new asset class is to bridge the gap between MFs and PMS, while ensuring robust risk management and investor protection.
  • - The notification came following the amendment made to the SEBI (Mutual Funds) Regulations, 1996.

💡 Other Important Facts:

  • (i) As per the new rules, fund managers of SIFs must hold relevant NISM certification, and the fees and expenses for SIF investment strategies will comply with Regulation 52 of the Mutual Fund (MF) regulations.
  • (ii) Under SIF regulations, investments in non-investment-grade debt instruments are capped at 20% of NAV (extendable to 25% with approval), while G-secs, treasury bills, and triparty repos are exempt; fees follow MF Regulation 52.
  • (iii) Under the new SIF regulations, investment in non-investment-grade debt instruments is limited to 20% of the NAV (can be increased to 25% with prior approval), while government securities, treasury bills, and triparty repos are exempt from these restrictions.

📚 Test Your Knowledge:

According to SEBI's new SIF regulations, the minimum investment for participation in the Specialised Investment Fund (SIF) is?

Correct Answer: 10 lakh

🚀 Quick Recap:

About SEBI

  • Chairman : Ms Madhabi Puri Buch
  • Headquarter : Mumbai