MF Lite Framework and Passive-Only AMCs in India

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

The MF Lite framework is a simplified regulatory pathway introduced by SEBI in 2021 for asset management companies (AMCs) that intend to offer exclusively passive mutual fund schemes – index funds, exchange-traded funds (ETFs), and fund of funds investing in ETFs. By reducing the minimum net worth requirement and simplifying certain governance obligations relative to the standard AMC registration framework, MF Lite lowers the entry barrier for new entrants focused on the passive investing segment and encourages competition in a space historically dominated by large, full-service AMCs.

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MF Lite Framework and Passive-Only AMCs in India