In the case of an active infringement of the threshold of RS 10 Lakh by an investor, including transactions on stock exchanges or off-market transfers, Sebi said that all units of such investors in the investment strategies of the sif in question would be frozen for Debit.
Moreover, such investors would be notified of 30 calendar days to reinstall the investments to meet the threshold.
“In the event that an investor balances his/her investments in SIF within the notice period of 30 calendar days, the units of such an investor will not be attached, and no further action will be taken with regard to compliance with the minimum investment threshold,” Sebi said in his circular.
If the investor does not balance the investments within a period of 30 calendar day, the frozen units are automatically exchanged by the AMC, at the applicable net asset value.
Specialized investment funds (SIFs), with which investment funds can launch advanced investment strategies as open-end, close-end and interval structures, will add depth and variety to the investment landscape of the country. For the purpose of SIF, the ‘active infringement’ would mean a decrease in the total value of the total investment of an investor in all investment strategies of SIF, under the minimum investment threshold of RS 10 Lakh, due to any transactions – repayment, transfer, sale – initiated by the investor.
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