SEBI’s Mutual Fund License Queue Grows to Nine

India’s mutual fund industry continues to attract new entrants, with three additional players submitting applications for licenses to the Securities and Exchange Board of India (SEBI) during the April-June quarter.

This surge brings the total number of entities awaiting SEBI’s approval for mutual fund operations to nine, as of June 30, 2026.

Recent Entrants Seek MF Licenses

The three new applicants identified in the latest quarter underscore the expanding interest in India’s asset management space, signaling robust confidence in the sector’s future.

• One Finance
• Northeast Broking Services
• Ashika Stock Services

Drivers Behind Sector Expansion

Several key factors are fueling this significant growth and attracting new players to the mutual fund sector, reflecting a dynamic market environment.

• Low market penetration across India remains a major opportunity for new funds to capture.
• Strong retail participation has consistently bolstered the industry’s asset base and investor confidence.
• Industry assets have increased more than threefold since the beginning of the pandemic, demonstrating rapid expansion.

Experts also point to the introduction of Specialised Investment Funds (SIFs) as a critical incentive for this expansion within the regulatory framework, creating new avenues for product development.

This regulatory development has created new avenues for investment products, driving further interest in the mutual fund structure.

These SIFs have particularly encouraged existing portfolio management services (PMS) and alternative investment fund (AIF) managers to pursue full mutual fund licenses, broadening their investment offerings and market reach.