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SEBI may loosen mutual fund borrowing rules for intraday liquidity
Business
Published on 13 May 2026

Intraday borrowing could expand beyond today’s tight limits
SEBI is considering easing borrowing norms for mutual funds, potentially allowing intraday borrowing for a broader range of purposes. The regulator is weighing uses such as meeting trade settlement obligations, handling forex transactions, funding derivative margin requirements, and addressing other short-term liquidity needs—aiming to reduce operational stress without compromising oversight.
- SEBI is considering wider intraday borrowing permission for mutual funds
- Potential uses include trade settlement, forex transactions, and derivative margins
- The move targets smoother liquidity management during short-term pressures
- Final changes depend on regulatory review and stakeholder inputs
Read the full story at The Economic Times
This summarization was done by Beige for a story published on
The Economic Times
