Markets regulator Sebi on Tuesday proposed introducing a new asset class to bridge the gap between mutual funds and portfolio management services (PMS) by looking to tap investors having investible funds between Rs 10 lakh and Rs 50 lakh.
The new asset class will provide a regulated product featuring greater flexibility, higher risk-taking capability, and a higher ticket size, to meet the needs of the emerging category of investors, Sebi said.
On minimum investment, Sebi has proposed that the minimum amount for investment under the new asset class should be Rs 10 lakh per investor.
"This threshold shall deter retail investors from investing in this product while attracting investors, with investible funds between Rs 10 lakh and Rs 50 lakh, who are today being drawn to unauthorised and unregistered PMS providers," Sebi said in its consultation paper.
The proposed new asset class is aimed at curbing the proliferation of unregistered and unauthorised investment products.
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