SEBI Clarifies Mutual Fund Sponsor Requirements

SEBI issues informal guidance rejecting the use of redeemable preference shares to meet a mutual fund AMC's ₹150 crore minimum net worth requirement.
The guidance clarifies that a family trust cannot be a sponsor of a mutual fund as it is not a body corporate.
The response is based on representations from First Water Capital Advisory LLP regarding SEBI's Mutual Fund Regulations 2026.