CIRCULAR
HO/(92)2026-IMD-POD-2/I/7885/2026 March 25, 2026
All Mutual Funds/
All Asset Management Companies (AMCs)/
All Trustee Companies/ Board of Trustees of Mutual Funds/
Association of Mutual Funds in India (AMFI)/
Sir / Madam,
Subject: Addendum to SEBI Circular on Borrowing by Mutual Funds
1. SEBI vide Circular No. HO/(92)2026-IMD-POD-2/I/6961/2026 dated March 13,
2026 (hereafter referred as “the circular”) prescribed certain guidelines on
borrowing by Mutual Funds and incorporated at clause 5.9 of SEBI Master
Circular for Mutual Funds dated March 20, 2026 (hereafter referred as “master
circular”).
2. In clause 4 of the circular (clause 5.9.1 of the master circular), guidelines were
specified for intraday borrowings by mutual funds.
3. In order to address the operational challenges raised by asset management
companies with respect to intraday borrowings by mutual funds, it has been
decided that the applicability of guidelines related to the intraday borrowings in
the circular, i.e., clause 5.9.1 of the master circular shall now come into effect from
July 15, 2026.
4. This circular is issued in exercise of powers conferred under Section 11 (1) of the
Securities and Exchange Board of India Act, 1992, read with the provisions of
Regulation 77 of SEBI (Mutual Funds) Regulations, 1996, to protect the interest of
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investors in securities and to promote the development of, and to regulate the
securities market.
5. This Circular is available at www.sebi.gov.in under the link “Legal > Circulars”.
Yours sincerely,
Priyanka Mahapatra
General Manager
Investment Management Department
Email: priyankam@sebi.gov.in
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