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Mutual funds pitch for wider operational leeway from Sebi

October 23, 2025

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Business Standard

Industry wants flexibility to expand globally, enter allied segments like wealth mgmt, advisory

- KHUSHBOO TIWARI

The mutual fund (MF) industry has urged the Securities and Exchange Board of India (Sebi) to tone down restrictive clauses in regulations governing asset management companies (AMCs), seeking greater operational flexibility to expand globally and into allied businesses.

Top MF houses have submitted their suggestions as part of Sebi’s review of Regulation 24(b) of the Mutual Fund Regulations, which restricts AMCs from pursuing several non-core business activities. While Sebi floated a consultation paper in July proposing limited relaxations, fund houses have now sought broader amendments. Key relaxations sought by MFs include easing restrictions on AMC mergers and acquisitions, permitting wealth and custom portfolio management for high-net-worth clients, allowing cross-distribution of products from other AMCs, and enabling the launch of a wider bouquet of value-added services.

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