Investing and the ₹10 lakh rules · a SIF concept, explained from SEBI’s rules.
In one line
When a holding falls below ₹10 lakh only because the NAV fell. There is no forced exit, but while it stays below, the investor may redeem only in full.
Passive breaches, such as those caused by a fall in NAV, are not a violation of the threshold, but if the total value falls below it, the investor may only redeem the entire remaining investment from the SIF (circular para 4.1.4.2). The investor may keep holding; partial redemption is not permitted while the value is below ₹10 lakh (FAQ A11).
Sources: SEBI circular on the SIF framework, 27 Feb 2025; SEBI FAQs on SIFs, Part A, 22 Sep 2026
Illustrative example. ₹10.5 lakh in a SIF becomes ₹9.6 lakh after a market fall. The investor may stay invested, but cannot take out ₹2 lakh: only a redemption of the whole ₹9.6 lakh is allowed until the value is back above ₹10 lakh.
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.
Nothing is forced. A fall caused only by NAV is a passive breach and you can stay invested. While the value is below ₹10 lakh, though, you can redeem only your whole investment in that SIF, not part of it.
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.