Mutual Fund News for August 2026
Sebi Resolves Over 5,500 Investor Complaints Through SCORES Platform
The Securities and Exchange Board of India (Sebi) resolved more than 5,500 investor complaints through its online grievance redressal platform SCORES in May 2026, according to data released by the regulator.
The platform received 4,918 fresh complaints during the month, while 5,548 complaints were closed. As a result, the number of pending complaints declined from 6,167 to 5,537 by May 31, 2026.
Sebi data showed that 10 complaints remained pending for more than three months, involving entities including KFin Technologies, Secur Credentials and Eastern Investments.
The regulator said entities took an average of five days to submit action taken reports on investor complaints during April, while first-level review complaints were resolved in an average of eight days.
Sebi clarified that pending complaints also include cases where entities have submitted responses within the prescribed timeline, but investors have sought further review due to dissatisfaction with the resolution.
Sebi Permits Depositories to Use Limited IPF Income for Expenses
The Securities and Exchange Board of India (Sebi) has allowed depositories to use a portion of the income generated from Investor Protection Fund (IPF) investments to meet specific operational expenses.
From September 2026, depositories can utilise up to 5% of the annual interest or income earned from the IPF corpus for expenses related to dedicated employees of IPF trusts and administrative costs, including taxes, audit charges and statutory fees.
Sebi said any expenditure beyond the permitted limit will have to be borne by the depository. If the approved amount remains unused during the financial year, it must be transferred back to the IPF corpus.
Earlier, the entire income generated from IPF investments was required to remain part of the corpus. Under the revised framework, at least 95% of annual income must continue to be added back to the fund.
Depositories have been directed to update their systems, amend relevant regulations and inform market participants about the revised provisions.
SBI Fund Management IPO Set to Create 13 Crorepati Employees
The proposed initial public offering (IPO) of SBI Funds Management is expected to create significant wealth for several senior employees who hold shares and employee stock options in the fund house.
The country’s largest asset management company introduced an employee stock option plan in 2018, allowing long-serving executives to benefit from the company’s growth. The IPO is expected to make 13 employees crorepatis through their equity holdings.
Deputy Managing Director Devinder Pal Singh holds over 21 lakh shares valued at around Rs. 121 crore at the upper IPO price band, along with additional ESOPs worth nearly Rs. 30 crore.
Chief Investment Officer Srinivasan Rama Iyer holds ESOPs valued at around Rs. 105 crore, while his outstanding options are worth another Rs. 51 crore.
Other senior executives, including Srinivas Jain, Rajeev Radhakrishnan, Aparna Nirgude and Vinaya Datar, also hold significant ESOP wealth.
The IPO will also provide an exit opportunity for SBI and Amundi India Holdings, the promoters of the fund house.
Sebi Simplifies Certification Rules for SIF Distributors
The Securities and Exchange Board of India (Sebi) has simplified certification requirements for distributors of Specialized Investment Funds (SIFs), allowing them to sell both mutual funds and SIF products through a single qualification.
The regulator has introduced the NISM Series V-D – Mutual Fund-Specialized Investment Fund Distributors Certification for individuals involved in SIF distribution.
Those who successfully complete this certification will be permitted to distribute both mutual fund schemes and SIF products without requiring a separate mutual fund distributor qualification.
However, distributors dealing only with traditional mutual fund products will continue to follow the existing requirement of holding the NISM Series V-A certification.
The move is aimed at reducing compliance complexity and creating a simpler framework for intermediaries entering the growing SIF segment. Sebi expects the revised certification structure to improve ease of doing business while ensuring that distributors possess the required knowledge to advise investors effectively.
Sebi Introduces Single Certification Exam for Mutual Fund and SIF Distributors
The Securities and Exchange Board of India (Sebi) has introduced a common certification framework for professionals involved in selling mutual funds and Specialized Investment Funds (SIFs).
Under the revised system, individuals engaged in the distribution of SIF products will need to obtain the NISM Series V-D – Mutual Fund-Specialized Investment Fund Distributors Certification.
The new certification will allow qualified distributors to handle both mutual fund and SIF products, eliminating the need for separate examinations and reducing regulatory requirements for intermediaries.
The move is part of Sebi’s efforts to simplify market processes while maintaining professional standards in investment distribution.
By creating a unified qualification pathway, the regulator aims to encourage wider participation in the SIF ecosystem and improve accessibility of specialised investment products for investors through trained and certified distributors.
Sebi Allows Standing Instructions for SWP and STP in Demat Mutual Fund Holdings
The Securities and Exchange Board of India (Sebi) has permitted investors holding mutual fund units in dematerialised form to create standing instructions for Systematic Withdrawal Plans (SWP) and Systematic Transfer Plans (STP).
Under the revised framework, investors can set up SWP instructions with mutual funds or their registrars and transfer agents for periodic redemption of a fixed number of units or a specified amount.
Similarly, investors can create STP mandates to transfer investments from one scheme of a mutual fund to another scheme through scheduled redemption and subscription transactions.
Earlier, such standing instructions were not available for mutual fund units held in demat accounts.
Sebi introduced the change after considering suggestions from depositories, a working group and the Secondary Market Advisory Committee. The move is expected to improve convenience for investors and support smoother operations in the mutual fund ecosystem.
AMFI Simplifies Mutual Fund Transmission Process for Nominees
The Association of Mutual Funds in India (AMFI) has revised the procedure for claiming mutual fund units or proceeds after the death of a unit holder, with the aim of making transmission easier for nominees.
The updated process seeks to reduce operational challenges faced by families during claim settlement, particularly issues related to documentation gaps and minor discrepancies.
Under the revised guidelines, Asset Management Companies (AMCs) have been advised to use the latest available address details of the deceased investor where there is a mismatch in recorded address information, provided appropriate supporting documents are available.
The changes are designed to make the claim process more investor-friendly and ensure smoother transfer of mutual fund holdings to eligible nominees.
The initiative aligns with broader regulatory efforts to protect investor interests and improve efficiency in financial asset transmission processes.
ICICI Prudential Flexicap Fund Delivers 13.83% Return on Monthly SIP Over Five Years
ICICI Prudential Flexicap Fund has generated strong returns for investors through systematic investment plans (SIPs), with a monthly investment of Rs. 10,000 growing to Rs. 8.47 lakh as of June 30, 2026. The investment period covered five years, during which the total amount invested was Rs. 6 lakh, delivering an XIRR of 13.83%.
During the same period, the benchmark BSE 500 TRI delivered an XIRR of 10.43%, with a similar SIP investment growing to around Rs. 8.17 lakh.
The fund also generated higher returns through lump sum investments. A Rs. 10 lakh investment made at inception increased to Rs. 19.61 lakh, translating into a CAGR of 14.55%, compared with Rs. 17.4 lakh for the benchmark.
Launched in July 2021, the flexicap fund follows a bottom-up stock selection approach focused on identifying companies with long-term growth potential. The fund house said its investment strategy is based on the philosophy that growth creates value.
Only One International Mutual Fund Open for Fresh SIPs and Lump Sum Investments
Fresh investments in international mutual funds have become increasingly restricted, with only one scheme currently accepting new SIP registrations and lump sum investments. Baroda BNP Paribas Aqua FoF is the only international mutual fund scheme continuing to allow fresh investments after several fund houses suspended new registrations.
Earlier, 12 international mutual fund schemes were accepting fresh SIPs. However, 11 schemes have now stopped accepting new investments, while existing SIP registrations continue according to their original mandates.
Recent restrictions were announced by fund houses including PGIM India Mutual Fund, Franklin Templeton and Edelweiss Mutual Fund, which suspended fresh subscriptions across multiple overseas-focused schemes.
The restrictions have been triggered by regulatory limits imposed by Sebi on overseas investments by mutual funds. Since international funds invest in foreign securities either directly or through feeder funds, asset managers have restricted fresh inflows after available overseas investment limits were reached.
