SEBI Recently Introduced a Framework for Specialized Investment Funds, Effective From April 1, 2025.

Banking & Finance

In February 2025, the Securities and Exchange Board of India (SEBI) introduced a new framework for Specialized Investment Funds (SIF), a new category of investment product aimed at bridging the gap between Mutual Funds (MFs) and Portfolio Management Services (PMS) in terms of portfolio flexibility.


      - This framework was introduced by SEBI through a circular issued in exercise of powers under Section 11(1) of the SEBI Act, 1992, read with Chapter VI-C of the SEBI (Mutual Funds) Regulations 1996, to protect investors' interests in securities and to promote the development and regulation of the securities market.

      - The new framework will come into force on April 1, 2025.

     

Main Point :-   (i) SEBI has directed the Association of Mutual Funds in India (AMFI) to issue necessary guidelines and standards for SIFs by March 31, 2025.

      (ii) Investors are required to maintain a minimum investment of Rs 10 lakh across all strategies under an SIF, which will not include investments made in regular MF schemes of the same AMC.

(iii) To launch SIFs, Asset Management Companies (AMCs) are required to have a minimum of 3 years of operation and an average Asset Under Management (AUM) of Rs 10,000 crore over the last 3 years.
About SEBI

Chairman : Shri Tuhin Kanta Pandey
Headquarter : Mumbai
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