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 .

SEBI 2020 on WebNotes

SEBI multi-cap reclassification 2020