SEBI has eased intraday borrowing rules for mutual funds and expands the scope of situations where borrowing can be used, according to NDTV. The regulator’s changes provide additional flexibility to fund houses in managing short-term liquidity needs during market and settlement operations. NDTV reports that the change responds to industry concerns raised by AMFI, the Association of Mutual Funds in India. AMFI had sought greater freedom under the intraday borrowing framework, arguing that mutual funds can experience settlement-related cash flow mismatches. These mismatches can arise around timing differences in cash movements tied to trading and settlement, which may affect how quickly funds meet operational requirements. The update also broadens the eligible use of intraday borrowing beyond cases limited to redemptions, the report says. The overall effect is to allow mutual funds to better handle intraday liquidity management while adhering to SEBI’s regulatory structure. The report does not indicate changes to the broader objective of the framework, but focuses on increased flexibility and expanded applicability within the intraday borrowing rules.