Starting September 1, 2026, SEBI will permit mutual funds to use intraday borrowing to address short-term liquidity mismatches during payouts.
The Securities and Exchange Board of India introduced the measure to help asset management companies manage timing gaps in redemptions and settlements.
Asset management companies will be required to cover all associated borrowing costs. This rule prevents any financial risk from being transferred to scheme investors.
The facility is limited to short-term needs and must comply with existing regulatory boundaries on market settlement timings.