SEBI allows mutual funds intraday borrowing from Sept 1 2026
The Securities and Exchange Board of India (SEBI) just rolled out new rules to help mutual funds handle cash crunches during trading hours.
Starting September 1, 2026, mutual funds (or AMCs) can borrow money using both guaranteed and expected payments to cover things like redemptions, payouts, and investment obligations, even mark-to-market changes or foreign exchange settlements.
It's all about making sure investors can get their money when they need it.
AMCs liable for repayment delays
All borrowed amounts have to be paid back by the end of the trading day, and any overnight loans have strict limits.
If there's a hiccup or delay in paying back, the asset management companies (AMCs) will have to absorb those costs themselves, so investors don't get stuck with extra charges.
These changes are designed to address liquidity mismatches and help manage short-term needs.