SEBI extended the deadline for submitting public comments till February 15 on a proposal to strengthen the regulatory framework for collective investment schemes (CIS).
In its consultation paper, Sebi proposed that each CIS should have a minimum subscription amount of Rs 20 crore and each CIS should have a minimum of 20 investors and no single investor should hold more than 25 per cent of the assets under management (AUM) of such scheme.
CIS is a pooled investment vehicle in closed-ended investment space and the units of the schemes are to be listed on the exchange.
Currently, CIS rules do not mandate the minimum number of investors, maximum holding of a single investor and minimum subscription amount in any CIS.
The regulator suggested that Collective Investment Management Company (CIMC) or its promoters should meet certain criteria with respect to the track record and networth.
(With inputs from PTI)
