BANKING & FINANCE
SEBI
SEBI Caps Mutual Fund Intraday Borrowings at 20% of Net Assets to Manage Liquidity
The Securities and Exchange Board of India (SEBI) has capped intraday borrowings by mutual funds at 20% of a scheme's net assets.
The new regulation, effective from April 1, 2026, aims to bridge timing mismatches in cash flows, such as when redemption requests arrive before funds from TREPS are received.
Borrowing is allowed for a maximum duration of 6 months and is applicable to debt schemes, equity index funds, and ETFs.
Exam Perspective: Liquidity risk management is a core focus for SEBI to protect investors from potential defaults or delays in redemption payments during market stress.
The new regulation, effective from April 1, 2026, aims to bridge timing mismatches in cash flows, such as when redemption requests arrive before funds from TREPS are received.
Borrowing is allowed for a maximum duration of 6 months and is applicable to debt schemes, equity index funds, and ETFs.
Exam Perspective: Liquidity risk management is a core focus for SEBI to protect investors from potential defaults or delays in redemption payments during market stress.
Key Facts / Static GK
SEBI HQ: Mumbai
Effective Date of new rule: 1 April 2026
Effective Date of new rule: 1 April 2026
Practice Quiz — 16 March 2026
Q1. Who administered the oath of office to Syed Ata Hasnain as the Governor of Bihar?
Answer: (C) Chief Justice of Patna High Court — As per the Constitution of India, the oath of office to a Governor is administered by the Chief Justice of the High Court of that state. In this case, Chief Justice Sangam Kumar Sahoo of the Patna High Court administered the oath.
Q2. Which Union Ministry was primarily responsible for organizing the 'Purple Fest' at Rashtrapati Bhavan?
Answer: (C) Ministry of Social Justice and Empowerment — The 'Purple Fest' is an initiative focused on Divyangjan (Persons with Disabilities), which falls under the jurisdiction of the Ministry of Social Justice and Empowerment.
Q3. What is the new revised fee for the NHAI FASTag Annual Pass for the financial year 2026-27?
Answer: (C) ₹3,075 — The NHAI has revised the FASTag Annual Pass fee from ₹3,000 to ₹3,075 for the financial year 2026-27, effective April 1, 2026.
Q4. Tuticorin Airport, which was recently renamed Thoothukudi Airport, is located in which Indian state?
Answer: (D) Tamil Nadu — The airport is located in the state of Tamil Nadu. The renaming was approved to reflect the local name of the city, Thoothukudi.
Q5. The festival of 'Chapchar Kut' is associated with which Indian state?
Answer: (C) Mizoram — Chapchar Kut is the most important traditional spring festival of the Mizo people in Mizoram, celebrated after the completion of jhum cultivation tasks.
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