Page 16 - Banking Finance May 2025

MUTUAL FUND

Sebi Plans to Ease Restric-

tive Mutual Fund Regula-
tion
The Securities and Exchange Board of
India (Sebi) is working towards easing
Regulation 24 for mutual funds, which
has been flagged as restrictive for fund Ò»©­
houses looking to expand into related
businesses.

Speaking at the CII's Annual Mutual
Fund Summit, Manjor Kumar, Execu-
tive Director at Sebi, said the regula-
tor is examining the issue but did not
provide a specific timeline for introduc- Sebi Expands Trading Window Closure to Relatives
ing revised norms.
of Designated Persons
Regulation 24(b) currently prohibits
mutual fund houses from entering sev- The Securities and Exchange Board of India (Sebi) has extended its auto-
mated trading window closure framework to include immediate relatives
eral associated businesses, limiting di-
of designated persons (DPs) in listed companies ahead of quarterly financial
versification and operational flexibility.
Industry participants have argued that results announcements.
the provision hampers growth oppor- This measure aims to prevent inadvertent insider trading violations by broad-
tunities and innovation within the sec- ening the scope to those who might possess unpublished price-sensitive in-
tor. formation (UPSI).
Kumar's comments signal Sebi's intent Previously, the restrictions were applicable only to designated persons. As
to balance regulatory oversight with per Sebi's guidelines, an immediate relative includes a spouse, and also a
the need to support the evolving busi- parent, sibling, or child (of the person or their spouse), provided they are
ness models of asset management financially dependent or consult the person for trading decisions.
companies. The updated framework will roll out in two phases: from July 1, 2025, for
The move, once formalized, is ex- the top-500 listed companies by market capitalisation, and from October 1,
pected to enhance operational flexibil- 2025, for all other listed companies.
ity for mutual funds, allowing them to This initiative is expected to strengthen the integrity of trading practices
expand offerings and potentially con- and enhance corporate governance standards across the market.
tribute to broader market develop-
ment.
The initiative seeks to promote finan- products accessible to all. This collabo-
cial inclusion by making mutual fund ration will help us provide an equal
UTI Mutual Fund Inte- investment products more accessible, opportunity to participate in India's

grates with ONDC to especially in Tier 2 and Tier 3 cities, growth story and be a trusted partner
where access to formal financial ser- for wealth creation," said Vinay
Broaden Reach vices remains limited. Lakhotia, Chief Financial Officer at UTI
UTI Asset Management Company "This integration reflects our ongoing AMC.
(AMC) has announced its integration commitment to financial inclusion. We Through ONDC's platform, UTI Mutual
with the Open Network for Digital are delighted to bring our investment Fund aims to democratise investing,
Commerce (ONDC), in partnership products to the larger investor commu- empowering new investors across In-
with Cybrilla, a financial technology nity and empower first-time investors, dia and bridging gaps in the distribu-
solutions provider. while making mutual fund investment tion of financial products.

14 | 2025 | MAY | BANKING FINANCE