The Securities Exchange Board of India (“SEBI”), in exercise of powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992 read with Chapter VI-C of the SEBI (Mutual Funds) Regulations 1996 vide Circular No. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2025/54,[1] dated April 09, 2025, issued certain clarifications for Specialized Investment Funds (“SIFs”). The provisions laid down hereunder shall come into effect immediately.
1. Background
SEBI, through its circular dated February 27, 2025 (the “SIF Circular”), introduced a comprehensive Regulatory Framework for SIFs to foster innovation in investment strategies while ensuring investor protection and transparency.
Subsequent to the issuance of the SIF Circular, SEBI received several queries and representations from industry participants and the Association of Mutual Funds in India (AMFI) seeking clarifications on certain provisions.
2. Clarifications and Modifications
Based on stakeholder feedback, SEBI has issued the following clarifications and amendments to streamline the implementation of the SIF framework:
- Applicability of Maturity Provisions in Interval Schemes
The provisions under paragraph 12.27.2.4 of the SEBI Master Circular for Mutual Funds dated June 27, 2024, which pertains to the maturity of securities in interval schemes shall not apply to Interval Investment Strategies introduced under the SIF framework.
- Revised Minimum Investment Threshold
Paragraph 4.1.1 of the SIF Circular, which outlines the minimum investment requirement, has been revised to ensure that an aggregate investment by an investor across all investment strategies offered by the SIF, at the Permanent Account Number (PAN) level, shall not be less than INR 10 lakh (Indian Rupees Ten Lakhs Only).
However, this requirement shall not apply to mandatory investments made by AMCs for designated employees, as specified under paragraph 6.10 of the SEBI Master Circular for Mutual Funds dated June 27, 2024.
[1]https://www.sebi.gov.in/legal/circulars/apr-2025/clarification-on-regulatory-framework-for-specialized-investment-funds-sif-_93401.html