SEBI's new rules for mutual funds: What you should know

Business Jul 18, 2025

SEBI is shaking up mutual fund rules so Value and Contra funds don't end up owning too many of the same stocks.
New funds in these categories can only launch if their portfolios overlap by less than 50%, and this will be checked at launch and every six months after.

What happens if a fund's overlap goes over 50%?

If a fund's overlap goes over 50%, the company has 30 business days to fix it—or else you can pull out your money with zero exit fees.
SEBI also wants debt fund names to be clearer and is tweaking rules for investments in REITs, InvITs, and equity.
It's all about making things more transparent, so investors (especially new ones) know what they're actually buying.
Public feedback on these proposals is open until August 8, 2023.
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