Mumbai, June 20 -- The Securities and Exchange Board of India (SEBI) has approved amendments to the SEBI (Mutual Funds) Regulations, 2026. The changes allow mutual funds to avail intraday borrowings to manage temporary liquidity mismatches during the day.

The decision was approved at the regulator's board meeting held on 19 June 2026.

Under the revised framework, mutual funds will be permitted to use intraday borrowings to bridge funding gaps arising from differences in settlement timings. These include pay-in and pay-out mismatches across asset classes, foreign exchange settlements and mark-to-market (MTM) payments on derivative positions.

SEBI said the facility will be in addition to the existing provision that allows mutual fund sch...