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

Banking & Finance | Dated: 03 Mar 2025

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.

🎯 Key Highlights:

  • - 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.

💡 Other Important Facts:

  • (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.

📚 Test Your Knowledge:

Which organization recently introduced a framework for Specialized Investment Funds (SIF)?

Correct Answer: SEBI

🚀 Quick Recap:

About SEBI

  • Chairman : Shri Tuhin Kanta Pandey
  • Headquarter : Mumbai