SEBI Tightens Timelines for Rebalancing Mutual Fund Portfolios

On 26th June 2025, the Securities and Exchange Board of India (SEBI) issued a new circular to bolster investor protection and maintain the integrity of mutual fund investments.

  • This circular clarifies and reinforces the regulatory expectations regarding how and when mutual fund portfolios must be rebalanced in the event of passive breaches of asset allocation or regulatory limits.

Key Points

  • SEBI expanded the applicability of Clause 2.9 of the ‘Master Circular for Mutual Funds’ (27-6-2024), and redefined the rules for rebalancing mutual fund portfolios, which were earlier meant only for asset allocation breaches, now applying to all types of passive breaches.
  • Originally, ....
Do You Want to Read More?
Subscribe Now
To get access to detailed content

Already a Member? Login here

Take Annual Subscription and get the following Advantage
The annual members of the Civil Services Chronicle can read the monthly content of the magazine as well as the Chronicle magazine archives.
Readers can study all the material since 2018 of the Civil Services Chronicle monthly issue in the form of Chronicle magazine archives.
Be an Annual Subscriber

Economy Watch