The SEBI (Securities & Exchange Board of India) released an essential circular on Thursday, January 8, 2026, introducing new rules. This circular outlines new reporting formats for SIFs (Specialised Investment Funds). It brings SIF in line with the existing rules for mutual funds. It builds on SEBI's earlier decision in February 2025 to create these mutual funds as a distinct category for knowledgeable investors seeking advanced strategies under the mutual fund structure.
SEBI made it clear that all the reporting rules to mutual funds under the SEBI (Mutual Funds) Regulations, 1996, the Master Circular for Mutual Funds and other guidelines that apply to regular mutual funds now cover SIFs too. Instead of building separate systems, the regulator has chosen to alter the current formats to add SIF-specific details. This is to ensure regulator clarity and to keep everything uniform and straightforward for everyone involved.
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Under this new framework of rules from SEBI, Asset Management Companies (AMCs) handling SIFs now face extra reporting duties in the Compliance Test Report (CTR). SEBI added a brand-new Part IV to the CTR format, where AMCs must report detailed compliance on things like minimum investment thresholds, allowed investment strategies, limits on fees and expense caps. The new rules limit issuer exposure and derivatives, along with portfolio disclosures, risk bands and scenario analysis. These disclosures will be included in the regular CTR submissions that Asset Management Companies (AMCs) make for mutual funds.
On top of that, SEBI, the regulator, has improved oversight by updating the Half-Yearly Trustee Report (HYTR). A new Clause 72A has been introduced, which requires trustees to review and confirm that they comply with rules related to SIFs. Trustees will no longer have to verify that the AMC has the right expertise, solid internal control systems and risk management setups to manage SIFs. They also confirm that the requirements related to disclosures, product differentiation, branding, advertising rules and investor protections are being met.
This circular comes into force immediately, effective from January 8, 2026. It is a smart move to tighten oversight while keeping things efficient for the industry in 2026.
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