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SEBI approves use of liquid MFs for investment advisers, research analysts' needs
This story was originally published at 21:54 IST on 18 June 2025
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--SEBI OKs use of liquid MF for deposit requirement by investment advisers
--SEBI OKs use of liquid MF for deposit requirement by research analysts
--SEBI OKs use of overnight MF for deposit requirement by invest advisers
--SEBI OKs use of overnight MF as deposits by research analysts
MUMBAI – The Securities and Exchange Board of India Wednesday said investment advisers and research analysts can use liquid mutual funds and overnight funds for compliance with their deposit requirement mandates. This will allow investment advisers and research analysts to use these funds in addition to bank fixed deposits.
The approval was given to facilitate the ease of doing business, SEBI said. A consultation paper on allowing the use of liquid mutual funds for this purpose was released May 9.
The move came after investment advisers and research analysts reached out to the regulator saying they were facing operational difficulties in opening fixed deposit accounts and seeking an alternative to bank deposits, SEBI said. Investment advisers and research analysts are required to maintain a deposit with a scheduled bank. Such deposit is then kept under lien with their administration and supervisory body.
SEBI noted that the operation and invocation of lien on units of a liquid mutual fund will remain within the securities market ecosystem, which will bring in greater efficiency. Mutual fund folios can be opened and operated digitally as well as in dematerialised mode, the regulator said. End
Reported by Srijita Bose
Edited by Rajeev Pai
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