SEBI Clarifies ₹10 Lakh Minimum Investment Requirement for SIFs Applicable at PAN Level.
Banking & Finance
In April 2025, the Securities and Exchange Board of India (SEBI), headquartered in Mumbai (Maharashtra), introduced a regulatory framework for Specialized Investment Funds (SIFs), which came into effect on April 1, 2025.
- Investors are now required to maintain a minimum aggregate investment of ₹10 lakh across all SIF strategies offered by a single Asset Management Company (AMC). This threshold is calculated at the Permanent Account Number (PAN) level and not per scheme.
- Accredited investors and investments made mandatorily by AMC employees are exempted from the ₹10 lakh minimum investment requirement.
- SEBI’s revised framework allows investors to opt for Systematic Investment Plans (SIPs), Systematic Withdrawal Plans (SWPs), and Systematic Transfer Plans (STPs) under SIFs. However, if market fluctuations reduce investment value below ₹10 lakh, immediate redemption is required.
Main Point :- (i) SIFs are structured to bridge the investment gap between Mutual Funds (MFs) and Portfolio Management Services (PMS). They are designed for High-Net-Worth Individuals (HNIs), offering tailored strategies such as long-short equity, sectoral rotation, and multi-asset diversification.
(ii) To launch SIFs, AMCs must have at least 3 years of operational history and should maintain an average Assets Under Management (AUM) of ₹10,000 crore or more over the last three years.
(iii) In a related development from March 2025, SEBI revised the minimum investment requirement for Zero Coupon Zero Principal (ZCZP) instruments listed on the Social Stock Exchange (SSE), lowering it from ₹10,000 to ₹1,000.
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