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Informist, Monday, Aug. 17, 2026

 

--SEBI combines multiple forms of mutual fund registration into 1 application

 

MUMBAI – The Securities and Exchange Board of India has streamlined the application process for the registration of mutual funds by revising and consolidating the existing forms into a single application form, the regulator said Monday in a circular. SEBI said the revision follows the recent overhaul of the SEBI (Mutual Funds) Regulations, 2026 and SEBI Intermediaries Regulations.

 

Currently, applications for the registration of a mutual fund are processed in two stages--in principle approval to the applicant for setting up a mutual fund and the final registration of the mutual fund. The in-principle approval is required to be submitted in form A, as prescribed under the master circular for mutual funds. The application for final registration of a mutual fund is required to be accompanies by forms C and D. These have been consolidated into a single application form under the revised framework.

 

The revised form A includes fundamental details of the sponsor such as name, registered and operating addresses, shareholding patterns, capital structure, and the proposed net worth contribution to the asset management company. This also includes the latest net worth of the sponsor and the audited financials for the last five years.

 

Next, the sponsor should select one of two routes for the eligibility criteria. Route 1 seeks the sponsor should have carried on business in financial services for a minimum of five years and its net worth must be positive in each of the immediately preceding five years, as per the circular. Its positive liquid net worth must also be more than the proposed capital contribution to the asset management company. The average net annual profit of the sponsor should be at least INR 100 million, after depreciation, interest and tax, from the financial services business during the immediately preceding five years.

 

Route 2 lays out the appointment of experienced personnel in the asset management company. The total combined experience of the chief executive officer, chief operating officer, chief risk officer, chief compliance officer, and chief investment officer should be at least 30 years and each of them should have a minimum of three years of relevant experience, as per the circular. The net worth of the asset management company should be at least INR 1.50 billion at the time of registration, which shall be infused by the sponsor. Another eligibility criterion is the initial shareholding equivalent to the capital contributed to the asset management company, to the extent of at least INR 1.50 billion, should be locked in for five years.

 

The next parts include details on business activities, experience, regulated activities, details of management, associates and group companies, and database verification and regulatory history. There are also additional requirements for a pooled investment vehicle or a private equity sponsor. The stage II or final registration for the asset management company seeks particulars of the company and some additional particulars where an existing asset management co. is proposed, as per the circular.

 

All other conditions specified in the master circular remain unchanged, the regulator said.  End

 

Reported by Ashutosh Pati

Edited by Deepshikha Bhardwaj

 

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