INCOME TAX19 Oct 2026
1 Finance gets SEBI nod for MF Lite passive funds
1 Finance has got in-principle approval from the Securities and Exchange Board of India (SEBI) for an asset management licence under the Mutual Funds Lite framework. It plans to launch passive funds, such as index funds and exchange-traded funds, in the fourth quarter of FY27, pending final registration. SEBI says its framework eases compliance for eligible passive-only fund houses and aims to expand investor choice.
Key Statutory Highlights
- SEBI brought in the MF Lite framework on 31 December 2024 to lower entry barriers for fund houses that sell only passive schemes.
- 1 Finance looks after more than ₹17,000 crore in assets under advice and wants to add investment products to its planning business.
- Not every passive product qualifies under MF Lite; SEBI has set eligible categories and rules on which indices a scheme can track.
Actionable Advice for Taxpayers / Founders:Watch for 1 Finance's fund launch, targeted for Q4 FY27 and still subject to final SEBI registration. When choosing a passive fund, the source says to compare expense ratio, the index tracked, tracking error, and for ETFs the liquidity and trading costs.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
Share: