SEBI Tightens Daily NAV Audit Rules for Hybrid Schemes

The Securities and Exchange Board of India (SEBI) introduced new compliance directives for hybrid mutual funds, mandating daily Net Asset Value audits beginning November 1. The framework requires fund houses to disclose valuation methodologies and maintain real-time transparency on asset mixes. Regulators said the step aims to protect retail investors from pricing distortions seen during volatile markets. Industry experts noted this will raise governance standards and reduce mispricing risk across balanced-advantage and dynamic-asset allocation categories that manage nearly ₹3 trillion collectively.