Archive · 18 Jul 2025
SEBI Proposes Overhaul of Mutual Fund Scheme Categorization
SEBI, India's financial watchdog, is updating the rules for mutual funds to prevent funds from investing in the same things.
They want to let funds offer both 'value' and 'contra' options, but with a limit on how much their investments can overlap.
Also, rules will be set on the types of bonds that can be invested, and other investment classes.
The public can share their thoughts on these changes until August 8th.
SEBI proposes changes to mutual fund scheme categorization to avoid portfolio overlaps.
The regulator suggests allowing both value and contra funds with a 50% overlap limit.
In arbitrage schemes, SEBI wants to limit debt instrument exposure to government securities.
Sectoral and thematic schemes would have a 50% overlap limit with other equity schemes.
Public comments on the proposed changes are accepted until August 8.
- Who
- Securities and Exchange Board of India (SEBI)
- What
- SEBI proposed changes to mutual fund scheme categorization.
- When
- Public comments accepted until August 8.
- Where
- India
- Why
- To address portfolio overlap and provide clarity.
Investors
Fund Managers
Investment Strategy
Investors
Greater clarity and potentially better fund performance.
Fund Managers
Concerns about the added complexity and potential for fund overlap.
- Regulatory Body
- SEBI
- Public Comment Deadline
- August 8
- Proposed Change
- Scheme Categorization Overhaul
- Overlap Limit
- 50%
- Relevant Schemes
- Value, Contra, Sectoral, Thematic
Sources
SEBI proposes several changes to mutual fund rules
Sebi issues draft circular on MF scheme categorisation, seeks public feedback
Sebi proposes review of categorisation of mutual fund schemes to avoid overlap. Details here
SEBI opens REITs, InvITs to MF equity, debt investors
