Scheme Merger on WebNotes

How to handle a mutual fund scheme merger or rebranding

Tue, 19 May 2026 00:00:00 +0000

Scheme merger / rebranding is common in Indian MF. SEBI mandates exit option without load for material changes. Most investors hold; verify the new mandate first.

Conflict-of-interest disclosure. This guide is published by WebNotes Editorial Team for informational purposes. WebNotes has no commercial relationship with any AMC. No affiliate commission is earned.

Step-by-step procedure

See the procedure infobox above for the six steps.

Scheme merger and conversion rules

Tue, 19 May 2026 00:00:00 +0000

SEBI’s scheme merger and conversion framework governs when and how AMCs can merge two existing schemes or convert a scheme from one category to another. The framework was particularly relevant during the implementation of the SEBI October 2017 categorisation , when AMCs had to consolidate overlapping schemes across the new category boundaries.

For Indian retail investors who hold units in a scheme being merged or converted, understanding the framework clarifies what to expect:

SEBI scheme merger and conversion rules (India)

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

SEBI scheme merger and conversion rules in India govern the process by which two or more existing mutual fund schemes are amalgamated into a single surviving scheme (merger), or a scheme is converted from one type or category to another (conversion). These rules are embedded in Regulation 18(15A) and Regulation 18(15B) of the SEBI (Mutual Funds) Regulations, 1996 , and elaborated through SEBI’s Master Circular. All scheme mergers require SEBI’s prior approval and a mandatory exit window for unitholders; the framework was heavily used during the SEBI scheme rationalisation circular 2017 compliance wave and the SEBI multi-cap reclassification 2020 exercise. These rules are administered by the SEBI Investment Management Department .