SEBI/HO/IMD/IMD -PoD -1/P/CIR/2025/107 — THE SECURITIES AND EXCHANGE BOARD OF INDIA ACT, 1992

CIRCULAR SEBI/HO/IMD/IMD -PoD -1/P/CIR/2025/107 To, All Mutual Funds All Asset Management Companies (AMCs) All Registrar and Share Transfer Agents (RTAs) All Trustee Companies/ Board of Trustees of Mutual Funds All Recognized Stock Exchanges All Recognized Clearing Corporations All Depositories Association of Mutual Funds in India (AMFI) Madam/ Sir, Subject: Monitoring of Minimum Investment Threshold under Specialized Investment Funds (SIF) SEBI vide circular dated February 27, 2025 ('SIF Circular') , and circulars dated April 09, 2025 and April 11, 2025 specified regulatory framework for Specialized Investment Funds ( ' SIFs ' ) . Para 4.1.4.1 of Annexure A of the SIF Circular specifies the following: "The Asset Management Company shall monitor compliance with the Minimum Investment Threshold on a daily basis and ensure that there are no active breaches. The AMC shall ensure that the investor's total investment value does not fall below the Minimum Investment Threshold due to redemption transactions initiated by the investor. " Based on the feedback received from the industry participants, the mechanism for monitoring compliance with Minimum Investment Threshold shall be as under - July 29, 2025 3.1.In case of any active breach of the Minimum Investment Threshold by an investor, including through transactions on stock exchanges or off-market transfers: 3.1.1. all units of such investor held across investment strategies of the concerned SIF shall be frozen for debit, and 3.1.2. a notice of 30 calendar days shall be given to such investor to rebalance the investments in order to comply with the Minimum Investment Threshold. 3.2.Pursuant to the notice under para 3 . 1 . 2 to the investor: 3.2.1. in case investor rebalances his/her investments in SIF within the notice peri