1. Home
  2. Current Affairs
  3. News Crux
  4. SEBI Permits Intraday Borrowing for Mutual Funds

SEBI Permits Intraday Borrowing for Mutual Funds

  • 13 Jul 2026

On 10th July 2026, the Securities and Exchange Board of India (SEBI) permitted mutual funds to avail intraday borrowing facilities to manage temporary liquidity mismatches arising from differences in market settlement timings.

  • The move follows amendments to the SEBI (Mutual Funds) Regulations, 2026, allowing intraday borrowing for specified operational purposes.
  • Mutual funds can use intraday borrowings for investor payouts such as redemptions, dividend distributions, interest payments, settlement of investments, mark-to-market obligations, foreign exchange settlements, and repayment of existing borrowings.
  • The borrowing amount will generally be limited to expected same-day inflows, including subscription proceeds, settlement receivables, and maturity proceeds.