ICICI Pru MF halts fresh subscriptions via lumpsum mode in mid & smallcap schemes

MUMBAI - ICICI Prudential Mutual Fund is temporarily suspending fresh subscriptions through the lumpsum mode and switches into its Smallcap and Midcap Fund, with effect from March 14.

Investors can initiate fresh systematic investment plan (SIP) and/or systematic transfer plan (STP) with a cap of Rs 2,00,000 per month per scheme, the fund house said.

However, the ongoing SIP/ STP/Special Product registered prior to the effective date will continue in the midcap and smallcap schemes, it said.


“Keeping the interest of the investors protected from sudden market movements, the Trustees have decided to temporarily discontinue subscriptions in the Schemes,” the fund house said.

Further, the special products or features like Freedom SIP, SIP top-up facility, booster SIP, booster STP, capital appreciation STP, transfer-in of income distribution, etc will not be available for fresh SIPs/STPs registered in the schemes, ICICI Prudential MF said.

“Any transaction which will result in the breach of the above restriction will be completely rejected. Partial amounts will not be accepted,” it said.

The move by one of India’s top five asset management companies comes after the Securities and Exchange Board of India raised concerns over the steep rally in smallcap and midcap stocks and the unprecedented inflows into the midcap and smallcap schemes.

In a letter to the Association of Mutual Funds in India (AMFI), SEBI on February 28 asked the association to ensure that a policy is put in place in consultation with Unitholder Protection Committees of AMCs, to protect the interest of all investors.

Even before the SEBI directive, several mutual funds have suspended lumpsum investments into midcap, smallcap and few other schemes, in view of the strong rally in the stocks.

Two days prior to the SEBI directive, Kotak Mahindra AMC stopped accepting lumpsum investments in its smallcap fund.

The bull run in midcap and smallcap stocks helped BSE’s market capitalization reach near $5 trillion mark.