<p>Mumbai: The Securities and Exchange Board of India (SEBI) is proposing a new asset class that allows investors to take on higher risk through a regulated product, the Indian market regulator said in a consultation paper released on Tuesday.</p><p>The asset class would fall between mutual funds meant for retail investors and portfolio management services that are targeted at high-net-worth individuals.</p><p>"The proposed New Asset Class seeks to provide investors with a regulated investment product featuring higher risk-taking capabilities and higher ticket size," SEBI said.</p>.Paytm gets warning from SEBI for old transactions with banking unit.<p>"It is aimed at curbing the proliferation of unregistered and unauthorized investment products," it added.</p><p>Under the new asset class, asset management companies can offer riskier strategies such as long-short equity strategies, which seek to deliver returns by taking long and short positions in equity instruments, or inverse exchange-traded funds that generate returns via an inverse correlation with an underlying index.</p><p>These funds will also be allowed to invest in derivatives.</p><p>The minimum investment amount for this asset class will be 1 million rupees ($11,961), the regulator proposed.</p><p>Fund houses must distinguish these schemes from their mutual fund products and disclose the level of risk associated with the investment strategies, it added.</p><p>SEBI has sought comments on its proposal by Aug 6, before it releases the final guidelines.</p>
<p>Mumbai: The Securities and Exchange Board of India (SEBI) is proposing a new asset class that allows investors to take on higher risk through a regulated product, the Indian market regulator said in a consultation paper released on Tuesday.</p><p>The asset class would fall between mutual funds meant for retail investors and portfolio management services that are targeted at high-net-worth individuals.</p><p>"The proposed New Asset Class seeks to provide investors with a regulated investment product featuring higher risk-taking capabilities and higher ticket size," SEBI said.</p>.Paytm gets warning from SEBI for old transactions with banking unit.<p>"It is aimed at curbing the proliferation of unregistered and unauthorized investment products," it added.</p><p>Under the new asset class, asset management companies can offer riskier strategies such as long-short equity strategies, which seek to deliver returns by taking long and short positions in equity instruments, or inverse exchange-traded funds that generate returns via an inverse correlation with an underlying index.</p><p>These funds will also be allowed to invest in derivatives.</p><p>The minimum investment amount for this asset class will be 1 million rupees ($11,961), the regulator proposed.</p><p>Fund houses must distinguish these schemes from their mutual fund products and disclose the level of risk associated with the investment strategies, it added.</p><p>SEBI has sought comments on its proposal by Aug 6, before it releases the final guidelines.</p>