The Securities and Exchange Board of India has granted in-principle approval to wealth technology firm 1 Finance to operate as the country’s first asset manager under the MF Lite regulatory framework. This milestone allows the advisory firm, which currently manages over ₹17,000 crore in assets under advice, to expand from pure advisory work into creating investment products.
The MF Lite Regulatory Framework
The regulator introduced the MF Lite structure on 31 December 2024 to reduce entry hurdles and compliance requirements for new market entrants. Traditional asset management rules previously imposed uniform, strict requirements on both active and passive fund managers alike.
Key elements of the regulatory shift include:
- Lowered capital and compliance requirements for specialized firms.
- Elimination of rigid rules tailored primarily for active management that are unnecessary for passive schemes.
- A strict restriction limiting participating firms exclusively to passive investment products such as index funds and exchange-traded funds.
- A primary focus on promoting competition, market penetration, and diversified investment options.
Strategic Vision and Timeline
The firm announced this regulatory development on 19 October 2026, positioning the move as a logical progression of its existing advisory philosophy. Co-founder and managing director Jeet Marwadi noted that true value lies in disciplined, tax-efficient investing and proper asset allocation rather than chasing market performance.
Key timeline and operational details include:
- In-principle approval secured on 19 October 2026.
- Target launch scheduled for the fourth quarter of the 2026-27 financial year.
- Launch remains contingent on fulfilling remaining regulatory and operational obligations to secure final registration.
Chief executive and co-founder Keval Bhanushali stated that the overarching goal is to deliver transparent, simple, and cost-effective solutions to Indian investors.