GENERAL16 Sept 2026
SEBI is said to ease arbitrage mutual fund rules to aid closing auction session | Stock Market News
SEBI has allowed arbitrage mutual funds to temporarily hold unhedged positions of up to 1% of their plan, to help the new closing auction session attract liquidity. These funds manage about ₹3 lakh crore. Earlier, they had to stay fully hedged, which made it hard to take part in the auction. Check with your fund if this affects your scheme.
Key Statutory Highlights
- SEBI is said to allow arbitrage mutual funds to temporarily carry unhedged positions of as much as 1% of their plans.
- The relaxation aims to bring liquidity into the closing auction session, which has struggled to attract enough players since its launch on 3 August.
- Arbitrage mutual funds held a combined ₹3 lakh crore in assets at the end of August.
Actionable Advice for Taxpayers / Founders:If you hold an arbitrage fund, watch for communication from your fund house about this change and check with your advisor or fund before making any decision.
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
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