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SEBI : Introduction Of a New Asset Class Or Product Category

Kumari Sonali

SEBI : Introduction Of a New Asset Class Or Product Category

The Securities and Exchange Board of India (SEBI) has proposed the introduction of a new asset class or product category.

  • This move is aimed at providing investors with a regulated investment product that features higher risk-taking capabilities, while also curbing the proliferation of unregistered and unauthorised investment products.
  • The minimum investment threshold under the new asset class has been proposed at Rs 10 lakh per investor.
  • SEBI proposes distinct naming for this new asset class to differentiate it from traditional MFs, PMS, Alternative Investment Funds (AIFs), Real Estate Investment Trusts (REITs), and Infrastructure Investment Trusts (INVITs).
  • Some of the investment strategies that may be permitted include long-short equity funds and inverse ETF (exchange-traded fund) (funds that are traded on stock exchanges, much like individual stocks).
  • Investors may also have an option of systematic plans such as systematic investment plan (SIP), systematic withdrawal plan (SWP) and systematic transfer plan (STP) for investment strategies under the new asset class.

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