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SEBI Issues New LAMF Guidelines: What Changed?
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SEBI’s 2025 LAMF update caps LTV at 50–70%, enforces cooling-off periods, and mandates clear disclosures to boost investor protection and lender accountability.
The Securities and Exchange Board of India (SEBI) introduced revised rules for Loans Against Mutual Funds (LAMF) in February 2025 to enhance investor safety and market transparency. Key updates include standardized LTV caps—equity funds now limited to 50% (previously 60%) and debt funds to 70%. Lenders must provide a seven-day cooling period between margin calls and liquidation. Full fee disclosure and mandatory leverage-risk warnings are now compulsory in loan documents. Grievance redress timelines are shortened to 15 days. Existing loans remain valid until renewal.