On March 20, 2026, SEBI released its updated Master Circular for Mutual Funds. It replaces the earlier circular dated June 27, 2024 and comes into effect from April 01, 2026.
This circular is aligned with the newly notified SEBI (Mutual Funds) Regulations, 2026 and consolidates all applicable guidelines into a single 748-page reference document.
At a Glance
Why Does This Matter?
Instead of searching through hundreds of individual SEBI circulars issued over the years, the entire mutual fund industry — AMCs, Trustees, RTAs, Exchanges, MFDs, RIAs, Custodians — can now refer to one single document for all compliance requirements.
Think of it as the updated compliance bible for the mutual fund ecosystem.
What's New This Time?
This is not just a routine update. Three entirely new chapters have been added:
Chapter 19 — Execution Only Platforms (EOP)
Digital platforms that facilitate direct plan transactions now have a formal regulatory framework. Two categories — AMFI-registered (Category 1) and Stock Broker-registered (Category 2). These platforms cannot offer regular plan services.
Chapter 20 — Mutual Fund Lite (MF Lite)
A lighter, relaxed regulatory regime exclusively for passive funds — covering domestic equity/debt index funds, Gold & Silver ETFs, and qualifying overseas passive funds. Less paperwork for simple products.
Chapter 21 — Specialized Investment Fund (SIF)
A new product category between traditional MFs and PMS/AIFs. AMCs need either ₹10,000 Cr average AUM with 3-year track record, or experienced CIOs with 10+ years of fund management. SIFs must carry distinct branding separate from the parent mutual fund.
Other Key Changes
- Aligned with new Regulations — Every chapter revised per SEBI (Mutual Funds) Regulations, 2026
- 34 more circulars rescinded — on top of those already rescinded in June 2024
- Prior actions remain valid — registrations, approvals, proceedings under old circulars continue
- New reporting formats — updated periodic & continuous compliance reporting from April 01, 2026
- Categorization revised — updated mutual fund scheme categorization & rationalization norms
Who Should Read This?
- Asset Management Companies (AMCs) & Trustee Companies
- Registrar & Transfer Agents (RTAs)
- AMFI, Stock Exchanges & Clearing Corporations
- Stock Brokers, Depositories & Custodians
- Mutual Fund Distributors (MFDs) — especially Chapters 15, 16 & 19
- Compliance Officers across the MF ecosystem
Quick Action Points for MFDs
- Review Chapter 16 — Certification & Registration of Intermediaries
- Understand Chapter 15 — Revised Investor Rights & Obligations
- Know the EOP boundaries (Chapter 19) — clear line between direct platforms and distributor services
- Update your internal compliance documentation by April 01, 2026
Read the full 748-page Master Circular on the SEBI website
Open SEBI Master Circular
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