Mutual fund industry update for distributors: SEBI changes, NFO launches & market trends (25 March 2026) - Moolaah Skip to main content

AMC & product-related updates

Structured Investment Funds (SIFs) are seeing increased traction, with more than 5,700 distributors now active in the segment. Interestingly, a large share of this growth is being driven by individual distributors.

HDFC Mutual Fund will begin allowing its Gold ETFs to take exposure to exchange-traded commodity derivatives from April 22. This move is aimed at addressing limitations in sourcing physical gold.

ICICI Prudential Life has introduced a new small-cap focused ULIP. The product is linked to the Nifty Smallcap 250 TRI, offering investors exposure to high-growth segments through an insurance wrapper.

Regulatory & policy developments

SEBI is a proposal to introduce an IT resilience index for market infrastructure institutions. The objective is to create a standardised framework for measuring system robustness.

The Finance Bill 2026 has been cleared in the Lok Sabha, marking progress in the broader fiscal approval process.

Mutual fund & distribution signals

Foreign institutional investors continued to reduce exposure, with net outflows of ₹8,010 crore. In contrast, domestic institutional investors remained net buyers to the tune of ₹5,867 crore.

On a year-to-date basis, FII selling has reached ₹1.47 lakh crore. Meanwhile, DIIs have absorbed a significant portion of this supply with purchases of ₹2.11 lakh crore.

Markets & sectoral trends

Equity markets have posted a strong recovery over the past two sessions. Benchmark indices have moved sharply higher, leading to a substantial increase in overall market capitalisation.

However, downside risks remain. Bernstein has revised its outlook, setting a base-case Nifty target of 26,000 while cautioning that a bearish scenario could see levels closer to 19,000. Key concerns include inflation pressures, elevated crude prices, and delayed monetary easing.

On the other hand, S&P Global Ratings has taken a more constructive view, projecting India’s FY27 GDP growth at 7.1%, supported by domestic demand and investment activity.

Currency movement remains a watchpoint. The rupee showed weakness during the session but avoided breaching record lows, aided by central bank intervention.

Corporate actions, capital flows & business developments

Reliance Jio is preparing for a potential public listing, with plans to dilute around 8% stake as part of the offering.

ONGC is evaluating a large-scale investment of up to $20 billion in deepwater exploration, reflecting a renewed push toward energy security.

India has secured significant crude supplies from Russia for April, helping manage short-term supply risks.

In the startup ecosystem, funding activity continues, with total inflows reaching $9.1 billion. Capital is increasingly being directed toward scalable and AI-driven business models.

Rocketlane has raised $60 million in its Series C round to expand its AI-led services platform.

REC has approved a ₹1.6 trillion borrowing plan for FY27, including issuance of tax-efficient instruments.

Additionally, the government has approved the revised UDAN scheme, with a ₹28,840 crore allocation aimed at expanding regional air connectivity.

Source: Moneycontrol, Business Standard, CNBC TV18, Cafemutual

Disclaimer: The content shared above is intended solely for general awareness and educational purposes for mutual fund and financial product distributors. It does not constitute investment advice, solicitation, or a recommendation of any kind. Investments in securities markets are subject to market risks. Distributors and investors should review all relevant documents carefully before making any decision.

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