Affluence Advisory
Quick Summary
Securities and Exchange Board of India ('SEBI') released a consultation paper dated: July 16, 2024 on introduction of new asset class/ product category. Following are the bullet points about the Consultation Paper ['CP'] 1. Background This CP is brought by SEBI to introduce a new king of invest
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FAQ :
The consultation paper aims to introduce a new asset class or product category specifically for a new type of investor who is comfortable with higher risks and can invest larger amounts than typically required for mutual funds.
This new asset class is designed for investors who are ready to take on higher risks and have a net worth sufficient for a higher ticket size investment, falling between mutual funds and Portfolio Management Services (PMS).
SEBI proposes that registered Mutual Funds will be able to issue these new products under a separate umbrella, ensuring clear bifurcation from existing MF schemes, provided they meet SEBI's registration criteria.
The minimum ticket size for investment in this new asset class is proposed to be Rs 10 lakhs.
SEBI has initially termed this asset class as 'Investment Strategies' and is seeking stakeholder views on whether this terminology should be continued or if a different name would be more appropriate.
This new category is expected to reduce the proliferation of illegal investment products and attract genuine investor money into the market, thereby increasing market depth.
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