𝐒𝐄𝐁𝐈 𝐍𝐨𝐭𝐢𝐟𝐢𝐞𝐬 𝐅𝐫𝐚𝐦𝐞𝐰𝐨𝐫𝐤 𝐟𝐨𝐫 𝐈𝐧𝐭𝐫𝐚𝐝𝐚𝐲 𝐁𝐨𝐫𝐫𝐨𝐰𝐢𝐧𝐠 𝐛𝐲 𝐌𝐮𝐭𝐮𝐚𝐥 𝐅𝐮𝐧𝐝𝐬
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 AMC’s 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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