mutual funds in india have two regulators. sebi is the main one. amfi is the industry body.
the rules changed in 2026. the sebi mutual funds regulations, 2026 replaced the 1996 rules.
sebi. the main regulator
sebi is the capital markets regulator. it regulates mutual funds under the sebi act, 1992.
sebi does many things. registers mutual funds and amcs. approves new schemes. oversees trustees and custodians. enforces investment rules. monitors expenses and governance. investigates violations.
what changed in 2026. the sebi mutual funds regulations, 2026 started from april 1, 2026. performance-linked fees are now allowed. disclosure rules are sharper. governance norms are stronger. a new “mutual fund lite” framework exists for passive products.
the master circular for mutual funds was updated on march 20, 2026.
amfi. the industry body
amfi is the association of mutual funds in india. it started in 1995. it is a non-profit. all sebi-registered amcs are members. there are 44 registered members, including 42 amcs.
sebi makes the rules. amfi helps implement them. amfi sets professional standards. promotes transparency. works with sebi, rbi, and the government. takes action against distributors who do not follow rules. protects investor interests.
what amfi did in 2025-2026. launched a ₹250 sip for first-time investors. created mitra platform to trace forgotten mutual fund holdings. started tarun yojana to teach financial literacy in schools.
how they work together
sebi and amfi work together. sebi creates the framework. amfi ensures compliance. amfi also gives investors a single place to access daily navs and portfolio data.
sebi’s framework is built on a trust structure. a mutual fund is a trust under the indian trusts act, 1882. the sponsor sets up the trust. the trustees oversee operations. the amc manages investments. the custodian holds the assets.
what changed in 2026
scheme categorisation. mutual funds are now in five groups. equity schemes. debt schemes. hybrid schemes. life cycle funds. other schemes.
portfolio overlap limits. thematic and sectoral funds cannot have more than 50% overlap with other equity schemes. amcs have three years to comply.
life cycle funds. these replaced solution-oriented schemes. they have a fixed maturity and a glide path for asset allocation. designed for goal-based investing.
frequently asked questions
1. which regulator oversees mutual funds in india ?
sebi is the primary regulator. amfi is the industry association.
2. what is the role of amfi ?
amfi promotes standards, transparency, and investor awareness. it represents the industry before sebi and the government.
3. what are the sebi mutual funds regulations, 2026 ?
they replaced the 1996 framework from april 1, 2026. they allow performance-linked fees, strengthen governance, and introduce new product categories.
4. what are life cycle funds ?
open-ended funds with a fixed maturity and a glide path for asset allocation. designed for goal-based investing. replaced solution-oriented schemes.
5. why did sebi cap portfolio overlaps ?
to prevent look-alike schemes and reduce concentration risk. thematic and sectoral funds have three years to comply.
