SEBI to Introduce New Guidelines for Specialized Investment Funds

The Securities and Exchange Board of India (SEBI) will soon release detailed rules for strategies under the Specialized Investment Fund (SIF) asset class. These strategies may include advanced options like inverse Exchange Traded Funds (ETFs) and long-short strategies.

A key update limits SIF investments in a single company's equity to 10% of its Net Asset Value (NAV), reduced from the initially proposed 15%. SEBI is also finalizing rules on derivative exposure, helping mutual funds align with the framework.

The aim is to diversify investment options and reduce concentration risks for investors. This initiative will also enhance transparency and safeguard investor interests.