SEBI Proposes Tighten Norms for CIS

Published on May 12, 2022
Current Context: SEBI notifies rules in order to strengthen regulatory framework subscription amount of atleast Rs 20 crore.
SEBI Proposes Tighten Norms for CIS
  • Securities & Exchange Board of India tightens the regulatory framework for Collective Investment Scheme (CIS).
  • SEBI mandated a minimum of 20 investors and a subscription amount of atleast Rs 20 crore for each CIS.
  • CIS is a pooled investment vehicle in the closed-ended investment space.
  • CIMCs are required to have a minimum net worth of Rs 50 crore as compared to the present requirement of Rs 5 crore.
  • Under the new framework, each CIS needs to have a minimum of 20 investors and no single investor will hold more than 25 percent of the assets under management of such schemes.
  • SEBI said CIS will not be open for subscription for more than 15 days. the scheme may be kept open for subscription for a maximum of another 15 days, at present, the limit is for 90 days.
  • Static Part:
    • SEBI Headquarter Mumbai
    • SEBI Chairman Madhabi Puri Buch

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