SEBI Relaxes Arbitrage Mutual Fund Rules to Boost Closing Auction Liquidity

The Securities and Exchange Board of India has granted arbitrage mutual funds flexibility to carry unhedged positions of up to 1%.

The regulatory change aims to inject liquidity into the stock market's closing auction session launched on August 3.

Arbitrage mutual funds commanded a combined asset base of ₹3 lakh crore ($31 billion) at the end of August.