Borrowing by Mutual Funds

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....aday Borrowings 1. As per prevalent industry practice, primarily for liquid and overnight schemes, the redemption payouts to the investors are processed in the morning hours of T+1 day whereas the mutual fund schemes receive the maturity proceeds from TREPS and reverse repo in the evening hours of T+1 day. In order to bridge the intraday timing mismatch of inflow and outflow of funds, the mutua....

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....period of 6 months. 3. In terms of Regulation 42 (2) of SEBI (Mutual Funds) Regulations, 2026, the limit of 20% is not applicable for intraday borrowings subject to such conditions as may be specified by the Board. 4. Accordingly, it has been decided that with effect from April 01, 2026, the following conditions shall be applicable for intraday borrowings by mutual funds: 4.1. The policy ....

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.....3.5. Sale proceeds of G-Sec/ T-bill/ SDL/ STRIPS 4.4. AMCs shall ensure compliance of clauses 6 and 7 of Fourth Schedule of SEBI (Mutual Funds) Regulations, 2026 and para 16.8 of SEBI Master Circular for Mutual Funds dated June 27, 2024. 4.5. In line with para 10.9 of SEBI Master Circular for Mutual Funds dated June 27, 2024, cost of intraday borrowing, if any, shall be borne by the AMC. Fu....

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.... equity cash segment of the Stock Exchanges with effect from the date of applicability of the aforesaid SEBI circular dated January 16, 2026 and in the manner specified therein. 7. This circular is issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992, read with the provisions of Regulation 77 of SEBI (Mutual Funds) Regulations, 1996....