# Sebi mutual fund regulatory updates > Live situation record from CLSTR: https://clstr.news/situations/sebi-mutual-fund-regulatory-updates > Updated: 2026-09-03T12:48:00.000Z. Sources: 2. Developments: 2. The Securities and Exchange Board of India (Sebi) has implemented several regulatory updates affecting mutual funds. In August 2026, Sebi streamlined the registration process by replacing a two-stage approval system with a single, consolidated application framework. This new process requires sponsors and asset management companies to provide extensive disclosures regarding financial history, ownership, and management. Additionally, Sebi confirmed that the Closing Auction Session (CAS) framework would remain in place while the regulator analyzes feedback for potential improvements. By September 2026, Sebi proposed a new framework to allow mutual fund schemes to net certain cash-market fund obligations. This proposal aims to improve settlement efficiency and reduce liquidity requirements for institutional investors by allowing eligible outright purchases to be offset against eligible outright sales within the same settlement cycle. While the underlying securities would still be settled on a gross basis, the mechanism is intended to mirror frameworks previously introduced for Foreign Portfolio Investors (FPIs). ## Timeline ### 2026-09-03: SEBI proposes net fund settlement for mutual funds SEBI has proposed allowing mutual funds to net cash-market fund obligations to ease liquidity pressures and improve settlement efficiency while maintaining gross settlement for securities. 2 sources. https://clstr.news/cluster/sebi-proposes-net-fund-settlement-for-mutual-funds ### 2026-08-17: Sebi streamlines mutual fund registration and maintains CAS framework Sebi has consolidated the mutual fund registration process into a single application framework and confirmed that the Closing Auction Session (CAS) reform will remain in effect while feedback is reviewed. 2 sources. https://clstr.news/cluster/sebi-streamlines-mutual-fund-registration-and-maintains-cas-framework --- Cite as: Sebi mutual fund regulatory updates. CLSTR, https://clstr.news/situations/sebi-mutual-fund-regulatory-updates