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SEBI Permits Intraday Borrowing Facility for Mutual Funds
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Supreme Court of Indiacorporate

SEBI Permits Intraday Borrowing Facility for Mutual Funds

July 11, 2026

Starting September 1, 2026, SEBI allows mutual funds to utilize intraday borrowing for approved purposes under specified conditions.

SEBI Permits Intraday Borrowing Facility for Mutual Funds

Under this framework, mutual funds can borrow on an intraday basis for specific purposes defined by the SEBI, which includes managing liquidity mismatches and optimizing investment strategies. The amendments to the Mutual Funds Regulations, 2026 outline the conditions that must be met to ensure compliance and protection for investors.

For legal practitioners and fund managers, this new facility provides greater flexibility in fund management, but requires careful adherence to the conditions set forth by SEBI. They are encouraged to stay updated on compliance requirements to better advise their clients regarding risk management and investment strategies.

Citations

  • SEBI Notification (2026)
Source:Supreme Court of India
Practice Areas:corporate

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