Mumbai, June 19 -- The Securities and Exchange Board of India (SEBI) on Friday approved a series of regulatory reforms, including allowing mutual funds to undertake intraday borrowings to manage liquidity mismatches, as the market regulator cleared several measures aimed at easing business operations and strengthening investor protection.

The decision was taken at the 214th meeting of the SEBI Board held in Mumbai.

In a key move for the mutual fund industry, the Board approved amendments to the SEBI (Mutual Funds) Regulations, 2026, to facilitate "intraday borrowings availed by mutual funds for managing liquidity mismatches during the day."

According to SEBI, the amendment allows mutual funds to use intraday borrowing for "bridging dif...