Regulatory Alerts2025-11-01
Securities and Exchange Board of India (Mutual Funds) Regulations, 1996
Issued by the Securities and Exchange Board of India (SEBI), these regulations establish the comprehensive legal framework governing the registration, governance, and operational conduct of mutual funds and their asset management companies in India. The rules mandate strict eligibility criteria, fiduciary duties for trustees and custodians, standardized valuation and net asset value computation, and rigorous disclosure obligations for all scheme launches, including specialized vehicles like real estate, infrastructure debt, and specialized investment funds. SEBI retains comprehensive inspection, audit, and adjudication powers to enforce compliance, impose penalties for defaults, and introduce streamlined regulatory structures such as the Mutual Fund Lite category to enhance market efficiency and investor protection.