Reduced Threshold for Large-Value Mutual Funds: Understanding SEBI's Proposal to Reduce the Minimum Investment Amount by a Third
In a move aimed at increasing accessibility to high-value investment opportunities, the Securities and Exchange Board of India (SEBI) has proposed a significant reduction in the minimum investment amount for Large Value Funds (LVFs).
Currently, accredited investors wishing to commit to LVFs must invest a minimum of Rs 70 crore ($7.9 million). However, SEBI's recent consultation paper suggests a new minimum investment amount of ₹25 crore, a reduction of nearly one-third[1][2][4][5].
This proposal is designed to make LVFs more accessible to a broader segment of accredited investors while maintaining their high-value investor profile. The changes could potentially simplify regulatory obligations for LVFs, exempting them from certain compliance requirements to encourage greater participation by domestic institutional investors and other high-net-worth entities[1][2][5].
The public consultation for these changes was initiated in August 2025, with feedback invited to finalize the regulatory amendments. If implemented, these changes could have significant implications for the alternative investment fund sector in India, potentially attracting more investments to the sector[1][2][4][5].
It is important to note that the proposed changes to LVFs are still under consideration and have not yet been implemented. The consultation paper issued by SEBI is seeking feedback and suggestions on the proposed changes to LVFs[1][2][3][6].
LVFs are a type of alternative investment fund regulated by the Securities and Exchange Board of India (SEBI). These funds are exclusively for accredited investors, offering unique investment opportunities in the alternative investment space[1][3].
[1] The Economic Times: SEBI proposes to reduce minimum investment amount for Large Value Funds [2] Livemint: SEBI proposes to cut minimum investment amount for Large Value Funds [3] Moneycontrol: SEBI proposes to cut minimum investment amount for Large Value Funds [4] Business Standard: SEBI proposes to cut minimum investment amount for Large Value Funds [5] Financial Express: SEBI proposes to cut minimum investment amount for Large Value Funds [6] Press Information Bureau: SEBI invites comments on proposals to amend the SEBI (Alternative Investment Funds) Regulations, 2012
The Securities and Exchange Board of India (SEBI) has proposed a reduction in the minimum investment amount for Large Value Funds (LVFs), making it easier for accredited investors to invest in this high-value business domain. This move could potentially simplify regulatory obligations for LVFs, encouraging greater participation by institutional investors and other high-net-worth entities.
