The Securities and Exchange Board of India (Sebi) has proposed introduction of a new investment vehicle catering to investors willing to take riskier bets on the market but for whom portfolio management services (PMS) schemes or alternative investment funds (AIFS) could be out of reach.
The regulator has mooted a minimum ticket size of ₹10 lakh for this yet-to-be-named product category much below the threshold of ₹50 lakh for PMS and ₹1 crore for AIFs. Meanwhile, the minimum investment size for mutual funds (MFS) can be as low as 100.
"The proposed new asset class seeks to provide investors with a regulated investment product featuring higher risk-taking capabilities and a higher ticket size, aimed at curbing the proliferation of unregistered and unauthorised investment products," Sebi has said in a discussion paper. "Over the years, a notable opportunity of a new asset class has emerged between MFs and PMS in terms of flexibility in portfolio construction," it added.
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