Description

DSP Trustee Private Limited has imposed temporary subscription restrictions on DSP Multi Asset Allocation Fund effective February 27, 2026, limiting subscriptions to Rs. 10 lakh per transaction per investor per day due to challenges in fund deployment.

Summary

DSP Trustee Private Limited has announced a temporary restriction on subscriptions in DSP Multi Asset Allocation Fund effective February 27, 2026. The restriction caps new subscriptions at Rs. 10 lakh per transaction per investor per day, citing challenges in deploying large incremental inflows in accordance with the desired asset allocation.

Key Points

  • Subscriptions exceeding Rs. 10 lakh per transaction/instalment/investor/day will not be accepted in the Scheme
  • Restriction applies to all subscription types: lump sum, switch-in, new SIP registrations, STP-in, and IDCW transfers
  • Applies to transactions received after cut-off time of 3:00 PM on February 26, 2026
  • Existing systematic transactions (SIP/STP) registered before the effective date will continue without interruption
  • IDCW reinvestment option will continue to allot units
  • Intra-scheme switches (Regular to Direct Plan and vice versa) and Intra-plan switches (Growth to IDCW and vice versa) are unaffected by the restriction
  • DSP Asset Managers reserves the right to reject applications or compulsorily redeem units at applicable NAV if multiple transactions exceed Rs. 10 lakh per day

Regulatory Changes

This circular serves as a Notice-cum-Addendum to the Scheme Information Document (SID) and Key Information Memorandum (KIM) of DSP Multi Asset Allocation Fund. The subscription cap of Rs. 10 lakh per investor per day overrides any conflicting provisions in existing scheme documents and forms an integral part of the SID until further notice.

Compliance Requirements

  • BSE StAR MF platform must enforce the Rs. 10 lakh per transaction subscription cap for DSP Multi Asset Allocation Fund
  • Distributors and intermediaries must communicate the restriction to investors before processing new subscription requests
  • Applications exceeding the cap submitted after the cut-off must be rejected
  • DSP Asset Managers may compulsorily redeem units if an investor’s aggregate daily transactions exceed Rs. 10 lakh
  • Investors are advised to update PAN, KYC, email, mobile number, and nominee details with the AMC and link PAN with Aadhaar

Important Dates

  • February 26, 2026, 3:00 PM IST: Cut-off time after which the subscription restriction applies
  • February 27, 2026: Effective date of the temporary subscription restriction
  • February 24, 2026: Date of signing of the addendum by DSP Asset Managers Private Limited
  • Until further notice: Duration of the restriction

Impact Assessment

The restriction primarily affects high-net-worth investors and institutional clients seeking to make large lump-sum investments or switches exceeding Rs. 10 lakh per day into the DSP Multi Asset Allocation Fund. Retail investors with SIPs or STPs already registered are unaffected. The measure is driven by inflow management concerns rather than regulatory non-compliance, suggesting a temporary but indefinite cap. Investors wishing to invest larger amounts will need to stagger transactions across multiple days, subject to the daily limit.

Impact Justification

Affects investors seeking to invest more than Rs. 10 lakh in DSP Multi Asset Allocation Fund but is limited to a single scheme; existing systematic transactions are unaffected.