Circular No. HO/(92)2026-IMD-POD-2/I/7885/2026, Dated: 25.03.2026
The Securities and Exchange Board of India has issued an addendum to its earlier circular on borrowing by mutual funds, deferring the implementation of provisions relating to intraday borrowings.
1. Revised Timeline
- The applicability of intraday borrowing guidelines has been deferred to July 15, 2026
- Earlier timelines have been extended due to operational challenges highlighted by Asset Management Companies (AMCs)
2. Regulatory Basis
The circular has been issued under:
- The SEBI Act, 1992
- The SEBI (Mutual Funds) Regulations, 1996
3. Key Rationale
- AMCs raised concerns regarding system readiness and operational implementation
- SEBI has provided additional time to ensure smooth transition and compliance
4. What This Means
- Mutual funds will get extra time to align systems and processes
- The move supports ease of implementation without disrupting fund operations
- Regulatory intent remains unchanged—better liquidity management and investor protection through controlled borrowing mechanisms
Click Here To Read The Full Circular
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