SEBI Introduces Mutual Funds Lite (MF Lite) Framework for Passively Managed Schemes

SEBI has introduced the Mutual Funds Lite (MF Lite) framework for passively managed schemes to make investing in mutual funds more accessible. The new regulations are designed to simplify the structure and compliance requirements for such schemes, primarily aimed at broadening investor participation in the passive investment space. Under MF Lite, there will be a reduction in operational costs, which in turn could lead to lower fees for investors. The framework focuses on minimizing the administrative burden on fund managers while ensuring transparency and accountability. This initiative is expected to promote the growth of passive investment strategies in India, enabling more investors to participate in the financial markets with ease and lower costs.