4 days ago

Sebi sets new conditions for intraday borrowing by mutual funds from April 1

Sebi sets new conditions for intraday borrowing by mutual funds from April 1

Summary

Capital markets regulator Sebi introduced a framework allowing mutual funds to use intraday borrowing to manage temporary liquidity mismatches. Effective April 1, the rules cap borrowing to same-day receivables, restrict usage purposes, mandate board-approved policies, and ensure asset management companies bear related costs and risks.
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AI Description

The Securities and Exchange Board of India (Sebi) has introduced a new framework for mutual funds to manage liquidity through intraday borrowing. This framework is set to take effect from April 1.