Sebi Slashes Minimum Investment for Social Impact Funds to Rs 1,000

Markets regulator Sebi has reduced the minimum investment from Rs 2 lakh to Rs 1,000 for individual investors in social impact funds. This is intended to boost retail participation on the Social Stock Exchange. Sebi has also amended rules for AIFs and revised norms for REITs and InVITs.

Sebi, the Securities and Exchange Board of India, has lowered the minimum investment for individual investors in social impact funds to Rs 1,000 from the previous requirement of Rs 2 lakh. This significant reduction is aimed at encouraging more retail investors to participate in the Social Stock Exchange (SSE).

The changes also align with Sebi's regulations under the Issue of Capital and Disclosure Requirements (ICDR) for Zero Coupon Zero Principal Instruments. The new amendments mean investors can now invest in securities of Not-for-Profit Organisations (NPOs) listed on the SSE with a much smaller initial commitment.

The regulatory body has also presented adjustments concerning Alternate Investment Funds (AIFs), including classifying inoperative funds and extending registration validity for NPOs on the SSE. The regulator also implemented changes for real estate investment trusts (REITs) and infrastructure investment trusts (InVITs).