Regulatory Update by Sebi

In a significant move to ensure the efficient use of investor funds, the Securities and Exchange Board of India (Sebi) has introduced a new regulation. Starting from April 1, 2025, asset management companies (AMCs) are required to deploy money collected from investors through new fund offers (NFOs) within 30 days from the date of allotment of units.

This directive aims to enhance the liquidity and operational efficiency of the funds, ensuring that investors' money is put to work promptly in the market. The regulation is expected to bring about a more disciplined approach to fund management, benefiting both the investors and the broader financial ecosystem.