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Corporate Laws Central Ministry of Finance Securities and Exchange Board of India Act, 1992

CDSL - Reiteration of SEBI Circular regarding Monitoring of Minimum Investment Threshold under Specialized Investment Funds (SIF)

30-Jul-2025 | CDSL/OPS/DP/POLCY/2025/505

CDSL has reiterated the SEBI Circular regarding the Monitoring of Minimum Investment Threshold under Specialized Investment Funds (SIF), effective from 29th July 2025.

This circular refers to Paragraph 4.1.4.1 of Annexure A of the SIF Circular, which mandates daily monitoring of compliance with the Minimum Investment Threshold and ensures that no active breaches occur.

Pursuant to this circular, the following actions are to be taken in the event of an active breach of the Minimum Investment Threshold by an investor:
1. All units held by the investor across investment strategies of the concerned SIF shall be frozen for debit.
2. A notice period of 30 calendar days shall be provided to the investor to rebalance their investments in order to comply with the Minimum Investment Threshold.

If the investor rebalances their investments within the 30-day notice period, the frozen units shall be unfrozen, with no further action required. However, if the investor fails to comply within the specified period, the frozen units shall be automatically redeemed by the Asset Management Company (AMC).

Additionally, the circular defines an "Active Breach" as a situation where the aggregate value of an investor's total investment across all investment strategies of the SIF falls below the Minimum Investment Threshold of Rupees 10 lakhs.

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