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<h1>SEBI Updates Mutual Funds Regulations: New Limits on Unlisted Debt Investments, Broader Foreign Investor Categories.</h1> The Securities and Exchange Board of India (SEBI) issued the Second Amendment to the Mutual Funds Regulations, 1996, effective September 23, 2019, with specific provisions commencing on October 15, 2019. Key changes include revisions to regulation 24, allowing broader categories of foreign portfolio investors under specified conditions. The Seventh Schedule now restricts mutual fund investments in unlisted debt instruments, allowing up to 10% in unlisted non-convertible debentures. Amendments to the Eighth, Ninth, and Eleventh Schedules address valuation guidelines, income receivable provisions, and investment disclosures, respectively. These modifications aim to enhance regulatory oversight and investor protection in the mutual fund sector.