Mumbai, Feb. 27 -- The Securities and Exchange Board of India has overhauled the framework governing categorisation and rationalisation of mutual fund schemes, tightening portfolio overlap norms, standardising nomenclature and discontinuing the solution-oriented schemes category with effect from 26 February 2026.

In a circular issued on 26 February 2026, SEBI superseded Clause 2.6 of Chapter 2 of the Master Circular for Mutual Funds dated 27 June 2024 and introduced revised categories, scheme characteristics and uniform descriptions across equity, debt, hybrid, life cycle and fund of fund segments.

50% overlap ceiling for sectoral and thematic equity schemes

SEBI has mandated that sectoral and thematic equity schemes shall ensure that ...