MUTUAL FUND News
SEBI Cracks Down on Market Manipulation Amid Jane Street Probe
SEBI Chairman Tuhin Kanta Pandey has affirmed the regulator’s zero-tolerance stance on market manipulation, following its recent action against US-based hedge fund Jane Street. Addressing the Bombay Chartered Accountants Society’s foundation day, Pandey said enhanced surveillance mechanisms are in place to track suspicious activities. The regulator recently barred Jane Street for allegedly manipulating index levels through trades in the cash and derivatives segments to gain from options market positions, ordering the seizure of Rs. 4,844 crore in unlawful gains.
Jane Street reportedly earned over Rs. 43,000 crore via index and stock options while recording substantial losses in other segments. SEBI’s ongoing probe now includes broader indices and expiry patterns, with a timeline of six months to a year.
Pandey emphasized investor protection remains a top priority, with initiatives to counter cyber frauds and streamline F&O regulations. SEBI also plans to allow e-wallets to function under the UPI framework from October 1 to prevent fraud.
Foreign Investors Infuse Rs. 14,590 Crore in June Amid Market Optimism
Foreign portfolio investors (FPIs) poured Rs. 14,590 crore into Indian equities in June, marking the third consecutive month of positive inflows. The boost was driven by improved global liquidity, easing geopolitical tensions, and expectations of policy rate cuts by the Reserve Bank of India. However, the momentum reversed slightly in July, with FPIs withdrawing Rs. 1,421 crore in the first week.
Analysts suggest near-term flows may remain volatile due to tariff deadlines and economic signals from the US. Vaqarjaved Khan of Angel One stated that uncertainty in global cues could impact foreign sentiment. Meanwhile, V K Vijayakumar from Geojit Financial Services noted that the upcoming Q1 earnings results will be key in determining the direction of future flows, as signs of corporate recovery could reignite investor interest.
The overall trend continues to reflect cautious optimism as investors watch for domestic and international macroeconomic cues before making sustained bets.
Aditya Birla Sun Life MF Launches Two New Factor-Based Index Funds
Aditya Birla Sun Life Mutual Fund has launched two innovative factor-based index funds: the BSE 500 Momentum 50 Index Fund and the BSE 500 Quality 50 Index Fund. These funds aim to give investors rule-based, passive exposure to equities with targeted strategies based on momentum and quality factors.
Open for subscription until August 4, both New Fund Offers (NFOs) have a minimum investment requirement of Rs. 500. Investors can also opt for systematic investment plans (SIPs) starting at Rs. 500 monthly. Managed by Priya Sridhar, these schemes are designed to appeal to retail investors seeking long-term capital growth with a strategic edge.
The Momentum 50 fund focuses on the top 50 performers from the BSE 500 universe, adjusted quarterly to capture market trends. Meanwhile, the Quality 50 fund will emphasize fundamentally strong stocks with consistent earnings. These launches reinforce Aditya Birla’s push into smart beta strategies in the Indian passive investment space.
Madhu Lunawat Becomes First Indian Woman to Establish Mutual Fund Business
Madhu Lunawat, Co-founder of the Pantomath Group, has become the first Indian woman to independently establish a mutual fund business with SEBI’s approval for The Wealth Company. This milestone marks a significant moment in India’s financial services sector, traditionally dominated by men.
The Wealth Company will now operate as an asset management firm under the SEBI-registered mutual fund framework. Among nearly 50 AMCs in India, only Edelweiss Mutual Fund has a woman CEO—Radhika Gupta—making Lunawat’s leadership a historic first in founding a fund house from the ground up.
Lunawat, a seasoned financial professional, has held leadership roles at Infosys, ASREC, and Edelweiss ARC, where she served as CFO. Speaking to media, she said, “This is not just a personal achievement—it’s a moment for every woman aspiring to lead in finance. We’re building a long-term platform aligned with the real needs of Indian investors.”
The Wealth Company is expected to launch its offerings soon.
SEBI Proposes Mutual Fund Norm Overhaul to Ensure Clarity and Reduce Overlap
The Securities and Exchange Board of India (SEBI) is proposing significant changes to mutual fund scheme categorization to address issues of portfolio overlap and enhance transparency. The initiative aims to ensure that mutual fund names are “true-to-label” and reflective of the underlying asset mix, reducing confusion for retail investors.
Among the proposed changes is the potential permission for asset management companies (AMCs) to launch a second scheme within the same category—provided it meets distinct investment criteria. SEBI is also considering allowing a portion of mutual fund assets to be invested in Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs), opening new diversification avenues for investors.
The proposals are part of SEBI’s ongoing efforts to improve investor protection, streamline offerings, and prevent duplication in fund strategies. The regulator is likely to consult stakeholders before finalising the framework, which could reshape how fund houses structure and market their schemes.
DSP Launches Endurance SIF to Target Experienced Investors
DSP Mutual Fund has launched Endurance SIF, a Specialized Investment Fund (SIF) platform tailored for seasoned investors seeking bespoke strategies within a disciplined regulatory framework. The initiative marks the creation of a distinct business vertical under DSP Asset Managers Pvt. Ltd., bridging the gap between mutual funds and portfolio management.
Endurance SIF aims to apply first principles of investing and risk management, offering an absolute returns approach that encourages long-term compounding. Drawing upon DSP’s 28-year mutual fund legacy and 12 years of global hedge fund experience, the platform seeks to deliver sophisticated solutions for high-net-worth investors.
“Investing must be approached with sound design, long-term vision, and principle-based discipline,” said Kalpen Parekh, MD & CEO, DSP Mutual Fund. The fund house emphasized that its SIF offerings are aligned with this philosophy, bringing evolved, innovation-driven products without compromising on regulatory integrity or investor protection.
360 ONE Overnight Fund Mobilizes Rs. 200 Crore in NFO
360 ONE Mutual Fund successfully raised over Rs. 200 crore during the New Fund Offer (NFO) of its 360 ONE Overnight Fund, which remained open from July 1 to July 9. Targeting corporates, high-net-worth individuals (HNIs), and retail investors, the scheme provides a low-risk, highly liquid solution for short-term surplus deployment.
Now open for continuous sale and repurchase from July 14, the fund requires a minimum investment of Rs. 5,000 with no exit load. “The strong investor response validates the demand for simple, low-risk instruments in volatile markets,” said Raghav Iyengar, CEO, 360 ONE Asset.
The open-ended debt scheme focuses on overnight instruments such as TREPs, reverse repos, treasury bills, certificates of deposit, and commercial papers. Suitable for investment horizons of one day to one month, the fund is designed to deliver reasonable returns while preserving liquidity, catering to investors who prioritize stability over complexity in uncertain financial climates.
Fund Managers Eye Long-Short Equity Strategy Under SIF Route
Indian and international fund houses are preparing to launch long-short equity funds for affluent investors, following SEBI’s approval of Specialized Investment Funds (SIFs) earlier this year. At least ten asset managers have signaled interest in this strategy through public filings and internal planning.
The SIF framework, introduced to provide sophisticated investors with more flexible investment options, came into effect on April 1. Long-short equity funds allow managers to take both bullish (long) and bearish (short) positions, offering a differentiated return profile compared to traditional equity funds.
These funds are available only to investors willing to commit a minimum of Rs. 10 lakh (approximately USD 11,663). Industry insiders view the new category as an important evolution in India’s investment landscape, aligning domestic offerings with global practices. The strategy aims to enhance portfolio diversification and potentially improve returns, though it comes with higher risk and complexity, targeting only experienced and well-informed investors.
ICICI Prudential Reopens Subscriptions for Three International Funds
ICICI Prudential Mutual Fund has announced the resumption of subscriptions in three of its international schemes—ICICI Prudential US Bluechip Equity Fund, Nasdaq 100 Index Fund, and Strategic Metal and Energy Equity Fund of Funds—effective July 17, 2025. Investors can now subscribe through lump sum, SIP, STP, or switch modes.
The move follows earlier restrictions on overseas investments imposed due to SEBI’s foreign investment limits. While these limits still apply, ICICI Prudential has re-opened the subscription window temporarily, with a caveat that it may again suspend inflows if the aggregate offshore exposure nears its cap.
The fund house has issued a notice-cum-addendum detailing the resumption and noted that other provisions in the Scheme Information Documents (SIDs) and Key Information Memoranda (KIMs) remain unchanged. This update offers global market exposure to Indian investors but comes with the warning that subscription availability may change based on regulatory thresholds.
