IFSCA has clarified that in case of investment by retail schemes in unlisted securities issued by an investment fund which is open-ended in nature and is regulated by the concerned regulatory authority in its home jurisdiction and is permitted for offering to retail investors in its home jurisdiction, the following ceilings/limits shall not apply –
- The ceiling of 15% investment of the total AUM of the scheme in unlisted securities in the case of an open-ended scheme.
- The minimum investment amount of USD 10,000 for close-ended schemes investing more than 15% of AUM in unlisted securitie.
- The ceiling of 50% investment of AUM in unlisted securities in case of a close- ended scheme.
- The ceiling of 25% investments of AUM in the associates.
Further, in case of a retail scheme which is in the nature of a fund-of-funds scheme, the FME shall disclose in the offer document of such retail scheme, the details of the underlying scheme(s) wherein the investments are intended to be made and the nature of association, if any, that the FME has with the manager of the underlying scheme(s).