Description

BSE introduces functionality and validations for Specialized Investment Funds (SIF) of 360 ONE Mutual Fund on the StAR MF platform, including requirements for accredited and non-accredited investors.

Summary

BSE has activated the Specialized Investment Funds (SIF) functionality for 360 ONE Mutual Fund on the BSE StAR MF platform. The circular establishes comprehensive rules for accredited and non-accredited investors, including minimum investment requirements, distributor qualifications, and system validations. A separate AMC has been created for SIF schemes, and members must comply with NISM XIII certification and AMFI registration requirements to distribute these products.

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 subject to minimum amounts set by AMC in Scheme Information Documents (SID)
  • Client AUM must not fall below ₹10 lakh due to redemption or any reason
  • Distributors must pass NISM XIII examination and register with AMFI to distribute SIF
  • Exchange provides facility to update accredited investor details manually or through bulk upload
  • Accredited investor details frozen at order entry level for fresh/lumpsum subscriptions
  • Accredited investors must renew registration certificate prior to expiry
  • For joint holdings, AI exemptions apply if first holder is accredited investor

Regulatory Changes

New Investment Framework for SIF:

  • Introduction of two-tier investor classification: Accredited and Non-Accredited
  • Minimum investment threshold of ₹10 lakh for non-accredited investors
  • Flexible minimum investment for accredited investors based on AMC-defined limits
  • Mandatory AUM maintenance rule: SIF client AUM must not fall below ₹10 lakh

Distributor Qualification Requirements:

  • NISM XIII examination mandatory for all distributors (new and existing members)
  • AMFI registration required for SIF distribution
  • Auto-mapping/empanelment for qualified distributors in AMC systems
  • Exchange will not validate distributor registration; responsibility lies with members

Accredited Investor Management:

  • Manual and bulk upload facilities for accredited investor details
  • Path: Admin » Client Details » Client Master Upload
  • Bulk upload format: Pipe-separated text file (Member Code | Client Code | PAN Number | Accredited No. | Validity)
  • AI details frozen at order entry level for new folio creation

Compliance Requirements

For Members/Distributors:

  • Complete NISM XIII examination
  • Register with AMFI for SIF distribution
  • Update accredited investor details accurately in system
  • Verify client accredited investor status before order placement
  • Monitor accredited investor certificate validity and renewal
  • Access Accredited Client Report via: Admin » Admin Reports » Accredited Client Report

For Investors:

  • Non-accredited investors: Maintain minimum ₹10 lakh investment
  • Accredited investors: Renew registration certificate before expiry
  • Accredited investors: Meet AMC-specified minimum investment amounts

Mode of Holding Rules for Accredited Investor Status:

  1. Single Mode of Holding: If first holder = AI, AI exemptions apply
  2. Joint Mode (FH = AI, JH = Non-AI): AI exemptions apply
  3. Joint Mode (FH = AI, JH = AI): AI exemptions apply
  4. Joint Mode (FH = Non-AI, JH = AI): AI exemptions do NOT apply; normal SIF regulations with limitations apply

Important Dates

  • Effective Date: February 5, 2026 (circular date)
  • Accredited investor certificates must be renewed prior to expiry (ongoing requirement)

Impact Assessment

Market Impact:

  • Opens new investment avenue for high-net-worth and accredited investors
  • Creates higher entry barrier with ₹10 lakh minimum for non-accredited investors
  • May increase participation from sophisticated investors in specialized schemes

Operational Impact:

  • Distributors must invest in NISM XIII certification and AMFI registration
  • AMCs/RTAs need to maintain separate infrastructure for SIF schemes
  • Enhanced compliance burden for members to verify and maintain accredited investor data
  • Risk of order rejection if distributor registration or AI details are incorrect

Investor Impact:

  • High minimum investment requirement limits retail participation
  • Accredited investors gain access to specialized investment opportunities with flexible minimums
  • Mandatory AUM maintenance requirement may force redemptions or additional investments
  • Joint account holders need careful planning regarding accredited investor status

Impact Justification

Introduction of new SIF category with specific regulatory requirements, minimum investment thresholds, and mandatory distributor qualifications affecting market participants and investors