Description

ICICI Prudential Mutual Fund suspends fresh subscriptions in Passive Multi-Asset Fund of Funds effective January 27, 2026, due to SEBI's framework on Fund of Funds schemes. The scheme will be grandfathered and merged/wound up within 3 years.

Summary

NSE has announced the temporary suspension of fresh subscriptions in ICICI Prudential Passive Multi-Asset Fund of Funds on the NSE MF Invest Platform effective January 27, 2026. This action follows SEBI’s framework for Fund of Funds schemes dated February 6, 2025, and subsequent permission for grandfathering dated January 20, 2026. The scheme cannot be classified under any category specified in the new framework and will be merged or wound up within 3 years from January 20, 2026.

Key Points

  • Fresh subscriptions through Lump Sum, new SIP, and STP registrations will be disabled from January 27, 2026
  • All purchase or switch-in transactions timestamped on or before 3:00 PM on January 23, 2026, will be accepted and processed
  • Existing SIPs and STPs will be discontinued effective February 5, 2026
  • IDCW reinvestment option will be changed to IDCW Payout
  • Redemptions, switch-outs, existing STP-Out, and SWP will continue without restrictions
  • The scheme will be merged or wound up within 3 years from January 20, 2026

Regulatory Changes

SEBI introduced a new Framework for launching Fund of Funds schemes with multiple underlying funds through a letter to AMFI dated February 6, 2025. ICICI Prudential Passive Multi-Asset Fund of Funds could not be classified under any category specified in this framework. SEBI granted permission for grandfathering the scheme via letter dated January 20, 2026, allowing it to continue with existing assets while restricting new subscriptions.

Compliance Requirements

  • NSE members must inform investors about the subscription restrictions
  • ICICI Prudential Mutual Fund must disable fresh subscriptions from January 27, 2026
  • The fund house must discontinue existing SIPs and STPs by February 5, 2026
  • IDCW reinvestment must be converted to IDCW Payout
  • The scheme must be merged or wound up by January 20, 2029 (3 years from grandfathering date)
  • All redemption and switch-out facilities must remain operational

Important Dates

  • January 23, 2026, 3:00 PM: Last timestamp for accepting purchase or switch-in transactions
  • January 27, 2026: Effective date for suspension of fresh Lump Sum subscriptions, new SIP, STP registrations, and switch-ins
  • February 5, 2026: Discontinuation of existing SIPs, STPs, and IDCW reinvestment options
  • January 20, 2029: Deadline for merger or winding up of the scheme (3 years from grandfathering permission)

Impact Assessment

This circular has significant impact on investors of ICICI Prudential Passive Multi-Asset Fund of Funds. Existing investors cannot make additional investments through any mode after January 27, 2026, and their systematic investment plans will be terminated by February 5, 2026. However, investors retain full flexibility to redeem or switch out their investments. The mandatory closure timeline of 3 years provides certainty but limits long-term investment planning. This action reflects SEBI’s effort to standardize Fund of Funds structures and eliminate schemes that don’t fit the new regulatory framework. Investors seeking similar passive multi-asset exposure will need to identify alternative schemes compliant with the new framework.

Impact Justification

Complete suspension of fresh investments in a mutual fund scheme affecting existing and potential investors, with mandatory closure within 3 years due to regulatory compliance.