Strategy types · a SIF concept, explained from SEBI’s rules.
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The two debt SIF strategy types. Both invest in bonds and may short through exchange-traded debt derivatives; both redeem at most once a week. No debt strategy is live yet.
A Debt Long-Short Fund invests in debt across durations, with unhedged short exposure through exchange-traded debt derivatives. A Sectoral Debt Long-Short Fund invests in at least two sectors, at most 75% in one, with up to 25% unhedged short exposure applied to a whole sector. Both are interval strategies redeeming once a week or less often (circular para 3.2, tables B1 and B2). Unhedged shorts must use exchange-traded, not over-the-counter, derivatives (FAQ B37, B38), and a sectoral fund may not be long and short in G-Secs at once (B39). Interval-fund maturity rules do not apply (clarification of 9 Apr 2025; B23).
Sources: SEBI circular on the SIF framework, 27 Feb 2025; SEBI clarification, 9 Apr 2025; SEBI FAQs on SIFs, Parts B and C, 22 Sep 2026
SEBI's example. If a Sectoral Debt Long-Short Fund is short on the Auto sector, every Auto-sector bond it holds must be held as a short position (circular para 3.2, table B2).
No Debt Long-Short strategy is live yet. Announced and filed launches are on our NFO monitor.
The two debt categories. A Debt Long-Short Fund invests in debt across durations and can short through exchange-traded debt derivatives; a Sectoral Debt Long-Short Fund holds debt of at least two sectors, at most 75% in one, with up to 25% unhedged short exposure. Both can redeem at most once a week; neither type has a live strategy yet.
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