SEBI scheme rationalisation circular of 2017

Sat, 16 May 2026 00:00:00 +0000

The SEBI scheme rationalisation circular of 2017, formally SEBI Circular SEBI/HO/IMD/DF3/CIR/P/2017/114 dated 6 October 2017, is the most consequential structural intervention in the history of the Indian mutual fund industry . It introduced a standardised categorisation framework for open-ended mutual fund schemes, defining 36 categories (subsequently extended to 37 with the November 2020 introduction of the Flexi Cap category) with precise investment mandates anchored to verifiable financial parameters. Each AMC was permitted to operate only one scheme per category, with limited exceptions for sectoral, thematic, index, and fund-of-funds categories.

SEBI multi-cap reclassification 2020

Tue, 12 May 2026 00:00:00 +0000

The SEBI multi-cap reclassification of 2020 refers to the reform introduced by SEBI circular SEBI/HO/IMD/DF3/CIR/P/2020/236 dated 6 November 2020, which amended the definition of multi-cap funds within the SEBI scheme rationalisation circular 2017 framework to mandate a minimum 25 per cent allocation each to large-cap, mid-cap, and small-cap stocks, with the remaining 25 per cent at the fund manager’s discretion. Prior to this amendment, multi-cap funds were required to invest only a minimum 65 per cent in equity, with no cap-wise sub-allocation, allowing fund managers to hold predominantly large-cap portfolios in a “multi-cap” fund. SEBI simultaneously introduced a new category, the Flexicap Fund, to provide an unconstrained equity allocation option. The circular was issued by the SEBI Investment Management Department and is grounded in the SEBI (Mutual Funds) Regulations, 1996 .

Mutual Fund Categorisation on WebNotes

SEBI scheme rationalisation circular of 2017

SEBI multi-cap reclassification 2020