Investing and the ₹10 lakh rules · a SIF concept, explained from SEBI’s rules.
In one line
When an investor's own transaction, such as a redemption or a transfer, takes their holding in a SIF below ₹10 lakh. Their units are frozen for 30 days and redeemed if the threshold is not restored.
The fund house must monitor the threshold daily and ensure a redemption by the investor does not take them below it (circular para 4.1.4.1). Under SEBI's FAQs, if an investor-initiated redemption, sale, transfer or off-market transfer does so, all their units across that SIF are frozen for debit; the investor has 30 calendar days to restore ₹10 lakh; if not, the units are redeemed at the NAV applicable on the next business day after the 30th day. For units in statement-of-account mode, such a redemption may simply be rejected (A10).
Sources: SEBI circular on the SIF framework, 27 Feb 2025; SEBI FAQs on SIFs, Part A, 22 Sep 2026
Illustrative example. An investor holds ₹12 lakh in a SIF and redeems ₹4 lakh, leaving ₹8 lakh. All their units in that SIF are frozen. A top-up to ₹10 lakh within 30 calendar days unfreezes them; otherwise they are redeemed.
Every SIF strategy type, within each strategy’s own offer document. All 36 live strategies are listed on our tracker; each one’s offer document sets its own limits within SEBI’s.
Your units in that SIF are frozen for 30 calendar days. If you top up to ₹10 lakh within that time they are unfrozen; if not, they are redeemed at the NAV of the next business day after day 30. A fund house may simply reject a redemption that would cause this.
Explanation only, not a recommendation. Trustner Asset Services Pvt. Ltd. is an AMFI-registered Mutual Fund & SIF Distributor (ARN-286886) and may receive commission from fund houses. Investments in Specialized Investment Fund involves relatively higher risk including potential loss of capital, liquidity risk and market volatility. Please read all investment strategy related documents carefully before making the investment decision.