Archive · 25 Nov 2025
Smaller MFs seek SIF entry barriers lowered
Smaller mutual fund companies in India had a meeting with the boss of the stock market regulator, Sebi.
They asked for changes to the rules that let big companies start special investment funds called SIFs.
Right now, the rules make it hard for smaller companies to start these funds.
The smaller companies think the rules are unfair because big companies already have the right people to manage these funds.
They also said that since these funds are for experienced investors, the investors should decide which company to trust with their money.
The meeting also talked about other changes to how much mutual funds charge for their services.
Smaller mutual fund houses asked Sebi to ease SIF entry requirements to help them compete with larger firms.
Current SIF entry rules favor large fund houses due to high asset under management (AUM) and experience requirements.
Smaller fund houses argue that the current framework is unfair as they have the same mutual fund license as larger players.
Sebi has set a minimum investment threshold of Rs 10 lakh for SIFs, and smaller fund houses believe investors should decide which fund to invest in.
The meeting also discussed proposed changes to the total expense ratio and brokerage charged by AMCs, with Sebi seeking data from AMFI on mutual fund transaction spending.
- Who
- Smaller mutual fund houses, Sebi, AMFI
- What
- Discussion on lowering SIF entry barriers and proposed changes to total expense ratio and brokerage
- When
- Monday (meeting date), October 2025 (data)
- Where
- India
- Why
- Smaller mutual fund houses believe current SIF entry requirements favor large fund houses and want a more level playing field
- Regulator
- Securities & Exchange Board of India (Sebi)
- Meeting Date
- Monday
- Sebi Chairman
- Tuhin Kanta Pandey
- Current SIF Entry Requirement (Track Record Route)
- 3 years of operation, average AUM of Rs 10,000 crores in preceding 3 years
- Current SIF Entry Requirement (CIO Route)
- CIO with 10 years of fund management experience and AUM of Rs 5,000 crores, plus additional fund manager with 3 years of experience and AUM of Rs 500 crores
- Minimum Investment Threshold for SIF
- Rs 10 lakh
- Net AUM of SIF Segment (Oct 2025)
- Rs 2,010.44 crores
- Total Number of Folios (Oct 2025)
- 10,212
- Net Inflows (Oct 2025)
- Rs 2,004.56 crores