๐๐๐๐ ๐๐จ๐ญ๐ข๐๐ข๐๐ฌ ๐ ๐ซ๐๐ฆ๐๐ฐ๐จ๐ซ๐ค ๐๐จ๐ซ ๐๐ง๐ญ๐ซ๐๐๐๐ฒ ๐๐จ๐ซ๐ซ๐จ๐ฐ๐ข๐ง๐ ๐๐ฒ ๐๐ฎ๐ญ๐ฎ๐๐ฅ ๐ ๐ฎ๐ง๐๐ฌ
SEBI Circular No. HO/(92)2026-IMD-POD-2/I/16006/2026, dated July 10, 2026
Securities and Exchange Board of India (SEBI) has laid down the conditions under which mutual funds may avail intraday borrowing, giving effect to the July 3, 2026 amendment to the SEBI (Mutual Funds) Regulations, 2026. The circular supersedes the earlier norms under the Master Circular for Mutual Funds and the circular dated March 25, 2026.
Mutual funds may now avail intraday borrowing to meet unitholder payouts (redemptions, IDCW, interest), fund scheme investment pay-ins, meet MTM and forex obligations, and repay existing borrowings. The quantum is tied to receivables reasonably expected within the day, whether guaranteed (RBI, Clearing Corporations, subscriptions) or non-guaranteed but sighted during the day (maturity proceeds, secondary market settlements). Borrowings must be repaid by end of day, and any rollover to overnight borrowing must stay within existing limits.
Before availing the facility, the AMC Board and Trustees must approve a formal policy, publish it on the AMCโs website, and maintain scheme-wise records of the liquidity mismatch and repayment source. The cost of borrowing, and any loss from delayed receivables, is to be borne by the AMC, not the investor.
Effective date: September 1, 2026.
A copy of the circular is enclosed.
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