SEBI Reviews Mutual Fund Regulation 24 for AMCs

16 April 20251 min read

Why in the news

SEBI began a thorough look at Regulation 24 after asset managers said it blocks their growth.

It stops Asset Management Companies (AMCs) from work that could clash with schemes’ interests.
Advisory for foreign funds needs SEBI’s prior approval.
Requires separate bank and securities accounts and a dedicated fund manager per scheme.
Executive Director Manoj Kumar called it “the only restrictive clause”; MF rules are among SEBI’s longest, so a comprehensive overhaul is under thought.

AMCs say it limits diversification, new revenue and global advisory scaling.
Easing could raise competitiveness, widen their global footprint and match modern business models.

1. SEBI's review of Regulation 24 of the Mutual Fund Regulations mainly concerns activities of which entities?

Regulation 24 limits AMC activities that conflict with fund schemes.

2. Under Regulation 24, advisory services to foreign funds by an AMC need whose prior approval?

Such services require SEBI's prior approval.

3. Which SEBI official called Regulation 24 the only restrictive clause in mutual fund rules?

Executive Director Manoj Kumar made the remark.

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