BENGALURU (Feb 26): India's markets regulator on Thursday rolled out tougher mutual fund rules, tightening category definitions and capping portfolio overlap to ensure schemes stay "true-to-label" and curb duplication. SEBI has also set strict limits on portfolio overlap, particularly for sectoral and thematic funds, as well as value and contra funds. For thematic equity schemes, SEBI requires that no more than 50% of a scheme's portfolio overlaps with other thematic schemes and other equity categories, except large-cap schemes. It will now be calculated on quarterly basis, using the average of daily portfolio overlap values over the period. Asset managers must also publish monthly category-wise overlap disclosures on their websites — equity vs equity, debt vs debt, and hybrid vs hybrid.

Source: The Edge Markets February 26, 2026 07:24 UTC