The Securities and Exchange Board of India (SEBI) issued Circular No. HO/(92)2026-IMD-POD-2/I/6961/2026 dated 13 March 2026 regarding Borrowing by Mutual Funds. The circular provides regulatory clarification and conditions relating to intraday borrowings by mutual fund schemes, particularly to address the timing mismatch between redemption payouts and receipt of maturity proceeds. It also aligns the operational framework with Regulation 42 of the SEBI (Mutual Funds) Regulations, 2026, which will come into force from 1 April 2026.
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