The Securities and Exchange Board of India (SEBI) has issued the Securities and Exchange Board of India (Mutual Funds) (Amendment) Regulations, 2026, vide Notification No. SEBI/LAD-NRO/GN/2026/307 dated July 3, 2026, in exercise of powers under Section 30 read with Section 11(2)(c) of the SEBI Act, 1992. The amendment substitutes Regulation 42(2) of Chapter VII of the Securities and Exchange Board of India (Mutual Funds) Regulations, 2026. The substituted provision states that nothing in Regulation 42(1) shall restrict mutual funds from undertaking intraday borrowing to address timing mismatches between a scheme’s outflows and inflows, subject to such conditions as may be specified by the Board. The amendment comes into force on the date of its publication in the Official Gazette. The notification also notes that the Securities and Exchange Board of India (Mutual Funds) Regulations, 2026 were originally published in the Gazette of India on January 15, 2026, vide Notification No. SEBI/LAD-NRO/GN/2026/294.
SECURITIES AND EXCHANGE BOARD OF INDIA
NOTIFICATION
Mumbai, the 3rd July, 2026
Securities and Exchange Board of India (Mutual Funds) (Amendment) Regulations, 2026
No.SEBI/LAD-NRO/GN/2026/307.— In exercise of the powers conferred by section 30 read with section
11(2)(c) of the Securities and Exchange Board of India Act, 1992 (15 of 1992), the Board hereby makes the following regulations to further amend the Securities and Exchange Board of India (Mutual Funds) Regulations, 2026, namely—
1. These Regulations may be called the Securities and Exchange Board of India (Mutual Funds) (Amendment) Regulations, 2026.
2. They shall come into force on the date of their publication in the Official Gazette.
3. In the Securities and Exchange Board of India (Mutual Funds) Regulations, 2026, –
(I) In Chapter VII, regulation 42 (2) shall be substituted with the following, namely, –
“(2) Nothing in sub-regulation (1) shall restrict the mutual funds from intraday borrowing for addressing timing mismatch between outflows and inflows of a scheme, subject to such conditions as specified by the Board.”
AMIT PRADHAN, Executive Director
[ADVT.-III/4/Exty./203/2026-27]
Note:
The Securities and Exchange Board of India (Mutual Funds) Regulations, 2026, was published in the Gazette of India on January 15, 2026 vide notification No. SEBI/LAD-NRO/GN/2026/294.
