Regulatory Alerts2025-06-26
Timelines for rebalancing of portfolios of mutual fund schemes in cases of all passive breaches
The Securities and Exchange Board of India (SEBI) issued this circular to clarify that existing portfolio rebalancing timelines apply to all types of passive breaches in actively managed mutual fund schemes. This directive, based on the Mutual Funds Advisory Committee's recommendation, ensures that deviations caused by market forces rather than AMC negligence are handled uniformly. The regulation aims to protect investor interests and maintain market integrity by standardizing compliance requirements for passive deviations from mandated asset allocations.
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