Sebi may expand intraday borrowing rules for mutual funds to boost cash management and returns

Published on 14 May 2026

New Sebi draft could let funds borrow beyond redemptions

Sebi is considering changes that would broaden how mutual funds can use intraday borrowing. Right now, such borrowing is mainly allowed to meet redemption payouts. Under the proposal, funds could use it more widely as a cash management tool to handle timing mismatches between outflows and receivables, potentially improving flexibility and returns.

Sebi plans to broaden mutual funds intraday borrowing usage
Current rules largely restrict borrowing to redemption payouts
Proposal targets timing gaps between outflows and receivables
Goal is better cash management flexibility and returns

#sebi #mutual funds #intraday borrowing #capital markets

Read the full story at The Economic Times

This summarization was done by Beige for a story published on The Economic Times

Sebi may expand intraday borrowing rules for mutual funds to boost cash management and returns

The full experience is on mobile.