Sebi notifies rules to strengthen the regulatory framework for CIS

Securities and Exchange Board of India (SEBI) has enhanced the net worth criteria and track record requirements with an aim to strengthen the regulatory framework for collective investment schemes.

The SEBI has mandated a minimum of 20 investors and a subscription amount of at least Rs 20 crore for each Collective Investment Scheme (CIS). SEBI has put a cap on cross-shareholding in Collective Investment Management Company (CIMC) to 10% to avoid conflict of interest.