Sebi's MF Lite plank for passive funds seen boosting India ETF landscape

Industry experts say it could help attract global players

The Securities and Exchange Board of India (Sebi) plans to introduce the Mutual Fund (MF) Lite regulations for asset management companies (AMCs) offering passive-only products in the current financial year.
 

The proposed framework aims to reduce the compliance burden by 90 per cent and remove limitations on networth and experience for those offering exchange-traded funds (ETFs) and index funds—where investment decisions are not discretionary, but tied to changes in the underlying benchmark index.
 

The move is seen as a game changer for the passive funds industry, which currently accounts for less than a fifth of the MF industry’s Rs 40-trillion