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SEBI may loosen mutual fund borrowing rules for intraday liquidity

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

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 TimesThe Economic Times

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