SEBI Enforces Stringent Rules on Specialized Investment Funds

SEBI introduces measures to ensure compliance with the Rs 10 lakh minimum investment threshold for Specialized Investment Funds (SIF). Violations will result in units being frozen, with a 30-day notice for investors to rebalance investments. Unbalanced units face automatic redemption if the deadline is missed.

Devdiscourse News Desk | New Delhi | Updated: 29-07-2025 17:20 IST | Created: 29-07-2025 17:20 IST

SEBI Enforces Stringent Rules on Specialized Investment Funds — This image is AI-generated and does not depict any real-life event or location. It is a fictional representation created for illustrative purposes only.

Country:
India

In a decisive regulatory development, the Securities and Exchange Board of India (SEBI) announced a new mechanism for ensuring adherence to the Rs 10 lakh minimum investment threshold in Specialized Investment Funds (SIFs).

According to SEBI's directions, any breach of the threshold will result in the immediate freezing of an investor's units across different investment strategies, with a subsequent grace period of 30 days provided for rebalancing investments.

Should investors fail to comply within the stipulated time, SEBI declared that the frozen units would be automatically redeemed at the prevailing Net Asset Value, bolstering the integrity and stability of India's investment landscape.

(With inputs from agencies.)