SEBI sets compliance reporting norms for Specialized Investment Funds
The circular, comes into force with immediate effect from January 8, 2026.
The Securities and Exchange Board of India (SEBI) on Thursday issued a circular prescribing detailed compliance reporting formats for Specialised Investment Funds (SIFs), integrating them into the existing mutual fund regulatory framework. The move follows the regulator’s earlier decision in February 2025 to introduce SIFs as a distinct category aimed at sophisticated investors seeking advanced investment strategies under the mutual fund structure.
SEBI clarified that all reporting requirements applicable to mutual funds under the SEBI (Mutual Funds) Regulations, 1996, the Master Circular for Mutual Funds, and other related guidelines will also apply to SIFs. Rather than introducing standalone reporting mechanisms, the regulator has chosen to modify existing formats to incorporate SIF-specific disclosures, thereby ensuring uniformity and regulatory clarity.
Under the revised framework, Asset Management Companies managing SIFs will be required to provide additional disclosures in the Compliance Test Report. SEBI has introduced a new Part IV in the CTR format that mandates reporting on compliance with minimum investment thresholds, adherence to permitted investment strategies, limits on fees and expenses, investment restrictions including issuer exposure and derivatives, as well as disclosure norms covering portfolios, risk bands and scenario analysis. These disclosures will form part of the regular CTR submissions made by AMCs for mutual funds.
The regulator has also strengthened governance oversight by expanding the scope of the Half-Yearly Trustee Report. A new Clause 72A has been added to the HYTR format, requiring trustees to specifically review and certify compliance related to SIFs. Trustees will now have to confirm that the AMC possesses the necessary expertise, internal control systems and risk management mechanisms to manage SIFs, and that requirements relating to disclosures, product differentiation, branding, advertising and investor protection are being met.
The circular, comes into force with immediate effect from January 8, 2026.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.