Sebi Amends MF Norms, Introduces New Asset Class

New Delhi: Markets regulator Sebi has notified norms for introducing a new asset class -- Spe-cialized Investment Fund -- for high-risk profile investors along with liberalised mutual funds lite (MF Lite) framework for passively managed schemes.Specialized Investment Funds (SIFs), which allow mutual funds to launch advanced investment strategies as open-ended, closed-ended and interval structures, will add depth and variety to the investment landscape of the country. The minimum amount of Rs 10 lakh can be invested per investor, except for accredited investors, across all investment strategies of the new product in a particular AMC, Sebi said in a notification issued on Monday.

The structure ensures limits on exposure to single issuers, companies, and sectors, maintaining risk controls. Also, Sebi has emphasised distinct branding, transparency and investor protection for these funds. The new product is intended to bridge the gap between mutual funds and port-folio management services in terms of flexibility in portfolio construction. Besides, it is aimed at curtailing the proliferation of unregistered and unauthorised investment schemes, which often promise unrealistic high returns and exploit investors’ expectations for better yields, leading to potential financial risks.