Description

BSE introduces Specialized Investment Funds (SIF) functionality on StAR MF platform with specific investment rules for Accredited and Non-Accredited investors, requiring minimum ₹10 lakh investment and NISM XIII certification for distributors.

Summary

BSE has introduced Specialized Investment Funds (SIF) of TATA MUTUAL FUND on the BSE StAR MF Platform with comprehensive functionality for handling investments through Accredited and Non-Accredited investors. The circular establishes separate AMC creation requirements, minimum investment thresholds of ₹10 lakh for Non-Accredited investors, mandatory NISM XIII examination and AMFI registration for distributors, and detailed validation rules for investor accreditation status across different modes of holding.

Key Points

  • Separate AMC creation required for SIF schemes on BSE StAR MF platform
  • Non-Accredited Investors must invest minimum ₹10 lakh for first-time investment in any SIF scheme
  • Accredited Investors follow minimum amounts set by AMC in Scheme Information Documents (SID)
  • SIF client AUM must not fall below ₹10 lakh due to redemption or other reasons
  • Distributors must pass NISM XIII examination and register with AMFI to distribute SIF
  • Manual and bulk upload facility provided for updating Accredited investor details
  • Accredited Investor details frozen at order entry level for new folio creation
  • AI registration certificate must be renewed prior to expiry
  • Special rules apply for joint holdings based on Accredited Investor status of holders

Regulatory Changes

  • New AMC activation on BSE StAR MF platform specifically for SIF schemes
  • Introduction of two-tier investor classification: Accredited and Non-Accredited
  • Mandatory NISM XIII examination requirement for new and existing members distributing SIF
  • AMFI registration mandatory for SIF distribution; auto-mapping/empanelment for qualified distributors
  • Implementation of validation system to maintain minimum ₹10 lakh AUM threshold for SIF clients

Compliance Requirements

For Distributors:

  • Pass NISM XIII examination
  • Register with AMFI for distributing SIF schemes
  • Update Accredited investor details accurately through member login (Admin » Client Details » Client Master Upload)
  • Verify and maintain current Accredited Investor certificates
  • Ensure all transaction details are accurate to avoid rejections from AMC/RTA

For Investors:

  • Non-Accredited: Minimum ₹10 lakh investment required
  • Accredited: Meet AMC-specified minimums per SID
  • Maintain AUM above ₹10 lakh threshold
  • Renew Accredited Investor registration certificate before expiry

Joint Holdings Rules:

  • Single Mode: AI exemptions apply if First Holder (FH) is AI
  • Joint Mode with FH=AI, JH=Non-AI: AI exemptions apply
  • Joint Mode with FH=AI, JH=AI: AI exemptions apply
  • Joint Mode with FH=Non-AI, JH=AI: No AI exemptions; normal SIF regulations apply

File Format for Bulk Upload:

  • Pipe-separated text file
  • Structure: Member Code | Client Code | PAN Number | Accredited No. | Validity

Important Dates

  • Effective immediately upon circular issuance (November 13, 2025)
  • Accredited Investor certificates must be renewed prior to expiry

Impact Assessment

Market Impact:

  • Opens new investment avenue through SIF schemes on BSE StAR MF platform
  • Higher entry barrier (₹10 lakh minimum) limits participation to high-net-worth and institutional investors
  • Creates differentiated product offering for sophisticated investors

Operational Impact:

  • Distributors must obtain NISM XIII certification, potentially limiting initial distribution network
  • Additional administrative burden for maintaining Accredited Investor records
  • Enhanced compliance requirements for member validation and reporting
  • Risk of transaction rejections if AI details not accurately maintained
  • New reporting requirements through Accredited Client Report (Admin » Admin Reports)

Investor Impact:

  • Non-Accredited investors face high minimum investment threshold
  • Accredited investors gain access to specialized investment products
  • Ongoing compliance requirement to maintain ₹10 lakh AUM threshold
  • Joint account holders need careful planning regarding AI status implications

Impact Justification

Introduces new investment category (SIF) with significant regulatory requirements including mandatory NISM XIII certification for distributors, ₹10 lakh minimum investment for non-accredited investors, and complex compliance frameworks affecting mutual fund distribution on BSE platform.