SEBI Relaxes SIF Norms, Exempts Mandatory AMC Staff Investments from ₹10 Lakh Rule [Read Order]
SEBI relaxes rules for Specialized Investment Funds, exempting AMC staff investments from the Rs. 10 lakh minimum requirement and easing norms for interval strategies
![SEBI Relaxes SIF Norms, Exempts Mandatory AMC Staff Investments from ₹10 Lakh Rule [Read Order]](https://www.taxscan.in/wp-content/uploads/2025/04/SEBI.jpg "SEBI Relaxes SIF Norms, Exempts Mandatory AMC Staff Investments from ₹10 Lakh Rule [Read Order]")
The Securities and Exchange Board of India (SEBI) has issued a new circular easing some of the rules for Specialized Investment Funds (SIFs). The circular clarifies two key points in response to questions from mutual fund companies and the industry association AMFI. According to the updated rule, an investor must invest at least Rs. 10 lakh in total across all strategies under a...
The Securities and Exchange Board of India (SEBI) has issued a new circular easing some of the rules for Specialized Investment Funds (SIFs). The circular clarifies two key points in response to questions from mutual fund companies and the industry association AMFI.
According to the updated rule, an investor must invest at least Rs. 10 lakh in total across all strategies under a Specialized Investment Fund. This minimum investment is calculated based on the investor’s PAN (Permanent Account Number).
Read More: President Trump Pauses Reciprocal Tariffs for 90 Days but China not Included
SEBI has made an exception for mutual fund companies. The rule will not apply to investments made by Asset Management Companies (AMCs) on behalf of their mandatory designated employees. This exemption is in line with an earlier rule that requires AMCs to invest in their own schemes to ensure accountability and alignment of interest.
Get a Handbook on TDS Including TCS as Amended up to Finance Act 2024, Click Here
SEBI has also relaxed a rule related to the maturity of securities in interval schemes. Normally, interval mutual funds must invest in securities that match the fund’s maturity timeline. But SEBI clarified that this rule will not apply to "Interval Investment Strategies" under SIFs. This gives fund managers more flexibility in managing these strategies.
These changes are effective immediately, starting from April 9, 2025, the date of the circular. The circular has been issued under SEBI’s powers from the SEBI Act, 1992, and the Mutual Funds Regulations, 1996, which are meant to protect investors and ensure smooth functioning of India’s financial markets.
The circular is available on SEBI’s official website under the legal section for circulars.
To Read the full text of the Circular CLICK HERE
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
