SEBI plans to introduce a new asset class between MFs and PMS with a minimum ₹10 lakh investment ticket size for non-hedging investments.

SEBI plans to introduce a new asset class between mutual funds (MFs) and portfolio management services (PMS) to bridge the gap and better serve investors with investible funds between ₹10-50 lakh. The new asset class, offered under the MF structure, will have a minimum investment ticket size of ₹10 lakh, allowing for investments in derivatives for purposes beyond hedging and portfolio rebalancing. The proposal aims to curb the proliferation of unregistered and unauthorized investment products and will be positioned under the mutual fund (MF) structure, though it will have more relaxed prudential norms.

July 16, 2024
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