SEBI has issued a clarification regarding the regulatory framework for Specialized Investment Funds (SIF) as outlined in its circular dated February 27, 2025. Based on industry queries and input from AMFI, SEBI has decided that the rules concerning the maturity of securities in interval schemes, as specified in the Master Circular for Mutual Funds dated June 27, 2024, will not apply to Interval Investment Strategies under SIFs. Additionally, the minimum investment threshold for SIFs, stated in the earlier circular, has been revised. The aggregate investment by an investor across all SIF investment strategies at the PAN level must now be at least INR 10 lakh. However, this minimum threshold will not apply to mandatory investments made by AMCs for designated employees as per the MF Master Circular. These clarifications take immediate effect from the date of this circular.
Securities and Exchange Board of India
Circular No. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2025/53 Dated: April 09, 2025
To,
All Mutual Funds
All Asset Management Companies (AMCs)
All Registrar and Share Transfer Agents (RTAs)
All Trustee Companies/ Board of Trustees of Mutual Funds
All Recognized Stock Exchanges
All Recognized Clearing Corporations
All Depositories
Association of Mutual Funds in India (AMFI)
Madam/ Sir,
Subject: Clarification on Regulatory framework for Specialized Investment Funds (‘SIF’)
1. SEBI Circular dated February 27, 2025 (‘SIF Circular’) specified Regulatory Framework for Specialized Investment Funds.
2. In this regard, based on queries raised by the industry participants and AMFI, the following has been decided:
2.1. The provisions under paragraph 12.27.2.4 of the Master Circular for Mutual Funds dated June 27, 2024 (‘MF Master Circular’), regarding maturity of securities in interval schemes, shall not be applicable to Interval Investment Strategies under SIF.
2.2. The paragraph 4.1.1 of the SIF Circular, regarding minimum investment threshold, shall stand modified as under:
“The AMC shall ensure that an aggregate investment by an investor across all investment strategies offered by the SIF, at the Permanent Account Number (‘PAN’) level, is not less than INR 10 lakh (hereinafter referred to as the ‘Minimum Investment Threshold’).
Provided that, the above provisions shall not be applicable for mandatory investments made by AMCs for designated employees under paragraph 6.10 of the Master Circular for Mutual Funds dated June 27, 2024.”
3. The provisions of this circular shall come into force with effect from the date of this circular.
4. This circular is issued in exercise of the powers conferred by 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 to protect the interest of investors in securities and to promote the development of, and to regulate the securities market.
5. This circular is available at sebi.gov.in under the link “Legal ->Circulars”.
Yours faithfully,
Peter Mardi
Deputy General Manager
Investment Management Department
+91-22-26449233
peterm@sebi.gov.in
