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Master Capital Services Wins SEBI In-Principle Nod for MF Business

19 November 20251 min read
BANKING & FINANCEMaster CapitalServices Wins SEBIIn-Principle Nodfor MF Business19 November 2025safalsetu.com

Why in the news

SEBI cleared Master Capital Services, wholly owned by Master Trust, to begin preparing for a mutual fund launch.

Key facts

  • In-principle approval is preliminary: the firm may set up systems, hire key staff and file scheme papers.
  • Then it must seek final registration under the 1996 MF Regulations; only afterwards can it collect investor money.
  • Master Trust is a broking group moving into asset management; new entrants add competition and choice.

Requirements to start an MF

  • A sponsor with a sound record and positive net worth.
  • An AMC and a Trustee Company; AMC net worth at least ₹50 crore.
  • Fit and proper status, governance and risk systems.

Exam angle

  • Governing rules: SEBI (Mutual Funds) Regulations, 1996.
  • AMC minimum net worth: ₹50 crore.

Test yourself

1. What type of approval did SEBI grant to Master Capital Services for its mutual fund plans?

SEBI gave in-principle, preliminary approval.

2. What minimum net worth must an AMC maintain under the notes on starting a mutual fund?

The AMC must keep a minimum net worth of ₹50 crore.

3. Under which regulations must a firm seek final registration to run mutual funds?

The notes cite SEBI (Mutual Funds) Regulations, 1996.

This topic is part of Daily Current Affairs 19 November 2025 (15 topics).

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