Sebi's 2025 Shake-Up: New rules for Mutual Fund Lite, derivatives, and finfluencers on the horizon

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Subscribe to enjoy similar stories. Key measures proposed by the market regulator are expected to see the light of day in 2025, with regulations kicking in for Mutual Fund Lite, the derivatives market and financial influencers.

While the Securities and Exchange Board of India has approved some initiatives that are set to take effect, it is still reviewing others, signaling that 2025 will likely be a dynamic year for investors, businesses, and regulators. Proposals under review include those on sustainable finance frameworks, digital platforms, angel funds, clearing corporation ownership, and easier algorithmic trading accessibility for retail investors.

The changes come with the possibility of changes at the helm of the regulator, with current chief Madhabi Puri Buch’s tenure ending in February, and the three-year terms of whole-time members Ashwani Bhatia and Ananth Narayan G set to end in June and August, respectively. Norms that will take effect in 2025 include the Mutual Fund Lite regulations, starting 16 March.

This is expected to reduce the regulatory burden for passively managed funds by setting a minimum net worth of ₹35 crore for asset management companies and additional requirements for their sound track record and liquid net worth. According to Sebi, a sound track record means being profitable in three of the five preceding years, including the fifth year, an average net profit of ₹5 crore over the five years, and a positive net worth in each of the five preceding years,Mint reported on 17 December.

Then there are the Specialized Investment Fund (SIF) Regulations, which come into force on 1 April. This new asset class is aimed at bridging the gap between mutual funds and portfolio management services and will