SEBI mutual fund stress testing framework of 2024

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

The SEBI mutual fund stress testing framework of 2024 is the regulatory framework introduced through SEBI Circular SEBI/HO/IMD/IMD-PoD-1/P/CIR/2024/14 dated 27 February 2024 that requires asset management companies (AMCs) managing small-cap and mid-cap mutual fund schemes to conduct monthly portfolio-liquidity stress tests and publicly disclose the estimated number of business days required to liquidate 25 per cent and 50 per cent of their small-cap and mid-cap portfolios under prevailing market conditions. The framework was SEBI’s policy response to the substantial inflows into small-cap and mid-cap funds during 2022 to 2023, which had produced concerns about liquidity mismatch between the open-ended scheme structure and the underlying market-cap segment’s daily trading liquidity. The framework is anchored in the SEBI (Mutual Funds) Regulations, 1996 and is administered by the SEBI Investment Management Department .

Small-cap mutual fund

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

A small-cap mutual fund in India is an open-ended equity scheme that must, under SEBI ’s October 2017 scheme categorisation circular, invest a minimum of 65% of its total assets in equity and equity-related instruments of small-cap companies. SEBI defines small-cap companies as all companies ranked 251st and beyond on the full-market-capitalisation list published by AMFI every six months. The small-cap category represents thousands of listed companies, providing an extremely wide investment universe that includes early-stage businesses, niche market leaders, turnaround candidates, and regional franchises.

Small-Cap Fund on WebNotes

SEBI mutual fund stress testing framework of 2024

Small-cap mutual fund