SEBI proposes allowing mutual funds to borrow intraday for operations

SEBI seeks feedback until June 3

With these updates, funds could borrow even if they don’t have incoming cash lined up, as long as they pay it back before the day ends.
If they need to hold onto the loan longer, there’s a cap: only up to 20% of the fund’s size.
SEBI also insists that any costs from borrowing should be covered by asset managers, so investors aren’t hit with extra fees.
Public feedback on these changes is open until June 3, 2026.