Latest SEBI News: The Securities and Exchange Board of India (SEBI) has officially approved the launch of a new asset class designed to bridge the gap between mutual funds (MFs) and portfolio management services (PMS).

Its purpose is to provide an investment option with greater flexibility and the possibility of giving high returns to investors with the ability to take risks. It is believed that this new investment option approved by SEBI will give a new direction to India's investment scenario.

Along with this, it will also help in curbing fake investment schemes that promise unrealistically huge returns. This will also save investors from getting trapped in the trap of unlisted schemes run illegally. Minimum ticket size 10 lakh Market regulator SEBI announced after its board meeting on Monday that this new investment product will have a minimum ticket size of Rs 10 lakh for investors in all investment strategies within a particular asset management company (AMC). SEBI's objective behind introducing this new category under strategic investment is to provide a new investment option apart from traditional mutual funds, so that investors get an opportunity to diversify their investments more. Investment of Rs 10 lakh to Rs 50 lakh In July, SEBI had issued a consultation paper to discuss this new project. Since then, this new product has been a topic of discussion in the market. This product will meet the needs of those investors who wish to invest between Rs 10 lakh and Rs 50 lakh and who are able to take market risks. This product will invest investors' money in the market under high risk-high reward investment strategies like long-short equity funds and inverse ETFs/funds. This product has been very popular among investors in international markets like the US and Australia for many years, yet it has not been launched in India yet. After SEBI's approval, now only eligible mutual funds with assets of at least Rs 10,000 crore will be able to launch it. Its management will also be handed over to experienced fund managers. Control over illegal schemes SEBI stressed that this new asset class will not only provide new investment opportunities to investors but will also prove helpful in curbing illegal investment schemes run by luring very high returns. SEBI has made strict rules of no-leverage and limitations as safety measures for the new product. This will curb more unlisted and unrated investments. Apart from this, derivative exposure will be limited to 25% of the Asset Under Management (AUM). These derivatives will be used only for hedging and rebalancing. This product has been introduced for investors with a capital of Rs 10 lakh or more as an investment with strong risk management measures. It is being seen as a well regulated and professionally managed investment option.