SEBI Proposes New Intraday Borrowing Framework for Mutual Fund Liquidity
Unlike regular borrowing, intraday borrowings must be repaid within the same business day to avoid being categorized as standard debt.
The regular borrowing limit for mutual fund schemes remains capped at 20% of the scheme's assets.
The cost associated with these borrowings must be borne by the Asset Management Company (AMC) and cannot be passed on to the investors.
Impact: This measure aims to prevent panic selling of securities by fund managers during sudden redemption pressures within a single trading session.
Key Facts / Static GK
SEBI Establishment: 1988 (Statutory status in 1992)
AMC: Asset Management Company
Headquarters: Mumbai
Practice Quiz — 16 May 2026
Q1. Which category of banks is primarily involved in the revised operating framework for cross-border outward remittances as per the recent RBI notification?
Q2. According to the SEBI proposal on intraday borrowing for mutual funds, who is responsible for bearing the cost of such borrowing?
Q3. Consider the following statements regarding the Coal Gasification Promotion Scheme: 1. The total financial outlay is ₹37,500 crore. 2. Incentive support is provided for up to 50% of plant costs. 3. Syngas is the primary product of the gasification process. Which of the statements is/are correct?
Q4. Which bank holds the distinction of being the first Taiwanese financial institution to establish a branch in GIFT City, Gujarat?
Q5. What is the primary technical advantage of the 'Pathfinder' satellite compared to traditional imaging satellites?
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