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SEBI amends the SEBI (Mutual Funds) Regulations, 19961 . The Securities and Exchange Board of India ("SEBI") vide notification no. SEBI/LAD-NRO/GN/2025/272 dated 31.10.2025, has notified the SEBI (Mutual Funds) (Second Amendment) Regulations, 2025 ("MF Amendment Regulations") to further amend the SEBI (Mutual Funds) Regulations, 1996 ("Principal MF Regulations"), which shall come into force on the date of their publication in the Official Gazette, i.e., 01.11.2025.
The key amendments introduced by the MF Amendment Regulations are as follows:
- The units of Real Estate Investment Trusts ("REITs") have been explicitly included within the definition of 'equity related instruments' under the Principal MF Regulations.
- The repurchase price of an open-ended scheme has been revised to not less than 97% of the Net Asset Value, increased from the earlier requirement of 95%, for the purpose of determining the minimum investment.
- The concentration limits of REITs have been revised as
follows:
- SIFs shall not own more than 15% of units of REITs issued by a single issuer across all investment strategies.
- Where a mutual fund owns 10% or more of a company's voting capital or REIT units, SIFs shall be restricted to holding not more than 5% of such company's voting capital or REIT units.
- Mutual funds are now subject to a 10% ownership limit across all schemes for both voting capital of companies and units of REITs issued by a single issuer.
Footnote
1. SEBI (Mutual Funds) (Second Amendment) Regulations, 2025.
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