SEBI Regulation on WebNotes

SEBI Liquid Fund Risk Management Framework 2019

Sun, 17 May 2026 00:00:00 +0000

The SEBI Liquid Fund Risk Management Framework, introduced through SEBI Circular SEBI/HO/IMD/DF2/CIR/P/2019/101 dated 20 September 2019, fundamentally restructured the operational and risk-management framework for Indian liquid mutual fund schemes. The framework was issued in response to the IL&FS Group default crisis of late 2018 and subsequent debt-fund credit events that had revealed structural risks in liquid-fund operations. The 2019 framework introduced multiple substantive changes including the 1:30 p.m. NAV cut-off (tightened from the prior 2 p.m.), the seven-day exit-load on early redemptions, the minimum 20 per cent in liquid assets portfolio composition requirement, the maturity-cap framework, and the Instant Access Facility (IAF) caps.

SEBI MF board independence framework

Sun, 17 May 2026 00:00:00 +0000

The SEBI MF board-independence framework is the regulatory structure under the SEBI (Mutual Funds) Regulations, 1996 that prescribes minimum board-independence and governance standards for Indian mutual fund Asset Management Companies (AMCs) and Trustee Companies. The framework requires AMCs and Trustees to maintain a minimum proportion of independent directors on their boards, with specific qualifications, conduct standards, and committee responsibilities. The independence framework is one of the principal investor-protection mechanisms in Indian mutual fund regulation, designed to ensure that AMC and Trustee operations are conducted in the interest of unitholders rather than purely in the interest of sponsors or affiliates.

SEBI MF sponsor and AMC eligibility conditions

Sun, 17 May 2026 00:00:00 +0000

The SEBI MF sponsor and AMC eligibility conditions are the regulatory criteria under the SEBI (Mutual Funds) Regulations, 1996 that any entity seeking to establish a mutual fund in India must meet. The framework establishes minimum standards for the sponsor entity (which initiates the mutual fund through a trust structure), the Asset Management Company (AMC) (which operates the schemes), and the Trustee Company (which fiduciarily protects unitholders). The eligibility conditions cover net-worth requirements, track-record criteria, fit-and-proper standards, operational capacity, and personnel qualifications.

SEBI MF Total Expense Ratio caps under Regulation 52

Sun, 17 May 2026 00:00:00 +0000

Regulation 52 of the SEBI (Mutual Funds) Regulations, 1996 establishes the Total Expense Ratio (TER) cap framework that governs the maximum annual expenses chargeable by Indian mutual fund schemes. The TER cap framework defines, by scheme type and AUM tier, the upper bound on the percentage of average daily net assets that an AMC can charge to investors as scheme expenses. The framework is one of the principal investor-protection mechanisms in Indian mutual fund regulation, designed to prevent excessive expense charges and ensure cost transparency.

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