**Executive Summary**
The Securities and Exchange Board of India (SEBI) notified the SEBI (Mutual Funds) (Amendment) Regulations, 2026, on July 3, 2026. The amendment modifies existing rules to allow mutual funds to engage in intraday borrowing to manage liquidity timing mismatches. These regulations come into force immediately upon their publication in the Official Gazette.
**Key Points / Main Content**
**Title and Commencement**
* The regulation is formally titled the Securities and Exchange Board of India (Mutual Funds) (Amendment) Regulations, 2026.
* The provisions are effective as of July 3, 2026, the date of their publication in the Official Gazette.
**Amendment to Borrowing Provisions**
* The document substitutes Regulation 42, sub-regulation (2) of the 2026 Mutual Fund Regulations.
* Mutual funds are now permitted to perform intraday borrowing to address timing mismatches between the inflows and outflows of a scheme.
* This borrowing is explicitly exempt from the restrictions mentioned in sub-regulation (1) of Regulation 42.
* All such intraday borrowing activities are subject to specific conditions as prescribed by the Board.
**Impact Analysis**
**Mutual Funds / Asset Management Companies (AMCs)**
**Impact**
Mutual funds gain increased operational flexibility to handle temporary liquidity gaps where scheme outflows occur before scheduled inflows on the same day.
**Action Required**
AMCs must ensure that any intraday borrowing strictly adheres to the specific conditions and limits set by SEBI.
**Securities and Exchange Board of India (SEBI)**
**Impact**
As the regulatory authority, SEBI is responsible for defining the specific conditions under which intraday borrowing can occur.
**Action Required**
SEBI must monitor the implementation of these provisions and provide the necessary regulatory framework/conditions as referenced in the amendment.
Key Entities Referenced
Securities and Exchange Board of India (Mutual Funds) (Amendment) Regulations, 2026: The specific regulatory amendment introduced to allow mutual funds to engage in intraday borrowing for addressing timing mismatches.
Securities and Exchange Board of India Act, 1992: The primary legislation that grants SEBI the legal authority to make regulations and oversee the securities market.
Securities and Exchange Board of India (Mutual Funds) Regulations, 2026: The principal policy document being amended, which governs the conduct and operations of mutual fund schemes.
Securities and Exchange Board of India: The statutory regulator responsible for formulating these regulations and overseeing the Indian capital markets.
रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
सी.जी.-एम.एच.-अ.-07072026-274229
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असाधारण
EXTRAORDINARY
भाग III—खण् ड 4
PART III—Section 4
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 434] िई ददल्ली, ि क्रिार, ि लाई 3, 2026/आषाढ 12, 1948 ष 22, 1947
No. 434] NEW DELHI, FRIDAY, JULY 3, 2026/ASHADHA 12, 1948 s 1947
भारतीय प्रजतभजू त और जिजिमय बोडड
अजधसचू िा
म ंबई, 03 ि लाई, 2026
भारतीय प्रजतभजू त और जिजिमय बोडड
(म्यचू अ ल फंड) (सिं ोधि) जिजियम, 2026
स.ं सबे ी/एल.ए.डी.-एि.आर.ओ/िी.एि/2026/307.— बोडड, भारतीय प्रजतभूजत और जिजिमय बोडड अजधजियम,
1992 (1992 का 15) की धारा 11(2)(ग) के साथ पठित धारा 30 द्वारा प्रदाि की गई िजियों का प्रयोग करत े हुए,
एतद्द्वारा भारतीय प्रजतभूजत और जिजिमय बोड ड (म्यूच अल फंड) जिजियम, 2026 का और संिोधि करि े के जलए
जिम्नजलजखत जिजियम बिाता ह,ै अथाडत ् -
1. इि जिजियमों को भारतीय प्रजतभूजत और जिजिमय बोड ड (म्यचू अल फंड) (संिोधि) जिजियम, 2026 कहा िा
सकेगा ।
2. ये जिजियम रािपत्र म ें इिके प्रकाजित होिे की तारीख को लागू होंगे ।
3. भारतीय प्रजतभूजत और जिजिमय बोडड (म्यूच अल फंड) (संिोधि) जिजियम, 2026 म,ें -
(I) अध्याय-VII म,ें जिजियम 42(2) के स्ट्थाि पर जिम्नजलजखत उप-जिजियम आ िाएगा, अथाडत्,-
5021 GI/2026 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4]
“(2) दकसी ददि स्ट्कीम के खात े से अदा की िाि े िाली रकम का समय और स्ट्कीम के खात े में आि े िाली रकम का
समय अगर कभी आगे पीछे हो िाए, तो ऐसे में उप-जिजियम (1) में बताई गई कोई भी बात म्यूच अल फंडों को उस ददि के
जलए उधार लेिे स ेिहीं रोकेगी, हालााँदक इसके जलए बोड डद्वारा जिधाडठरत की गई ितों का पालि तो करिा ही होगा ।”
अजमत प्रधाि, कायडपालक जिदिे क
[जिज्ञापि-III/4/असा./203/2026-27]
ठिप्पणी :
भारतीय प्रजतभूजत और जिजिमय बोडड (म्यूच अल फंड) जिजियम, 2026 (अजधसूचिा फा. सं. सेबी/एलएडी-
एिआरओ/िीएि/2026/294) 15 िििरी, 2026 को भारत के रािपत्र म ेंप्रकाजित हुए थ े ।
SECURITIES AND EXCHANGE BOARD OF INDIA
NOTIFICATION
Mumbai, the 3rd July, 2026
SECURITIES AND EXCHANGE BOARD OF INDIA (MUTUAL FUNDS) (AMENDMENT)
REGULATIONS, 2026
No.SEBI/LAD-NRO/GN/2026/307.— In exercise of the powers conferred by section 30 read with section
11(2)(c) of the Securities and Exchange Board of India Act, 1992 (15 of 1992), the Board hereby makes the following
regulations to further amend the Securities and Exchange Board of India (Mutual Funds) Regulations, 2026, namely—
1. These Regulations may be called the Securities and Exchange Board of India (Mutual Funds) (Amendment)
Regulations, 2026.
2. They shall come into force on the date of their publication in the Official Gazette.
3. In the Securities and Exchange Board of India (Mutual Funds) Regulations, 2026, -
(I) In Chapter VII, regulation 42 (2) shall be substituted with the following, namely, -
“(2) Nothing in sub-regulation (1) shall restrict the mutual funds from intraday borrowing for addressing timing
mismatch between outflows and inflows of a scheme, subject to such conditions as specified by the Board.”
AMIT PRADHAN, Executive Director
[ADVT.-III/4/Exty./203/2026-27]
Note:
The Securities and Exchange Board of India (Mutual Funds) Regulations, 2026, was published in the Gazette
of India on January 15, 2026 vide notification No. SEBI/LAD-NRO/GN/2026/294.
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.