Mutual Funds in India: Registration Process, Requirements and Fees

 Mutual funds are an important part of India's investment ecosystem because they pool money from investors and invest it according to a defined investment objective. For an entity planning to establish and operate a mutual fund in India, regulatory compliance is essential. Registered Mutual Funds operate within the regulatory framework prescribed by the Securities and Exchange Board of India (SEBI).

The registration of mutual fund with SEBI India is governed primarily by the SEBI (Mutual Funds) Regulations, 1996. The framework covers registration, governance, trustees, asset management companies (AMCs), custodians, scheme launches, disclosures and ongoing compliance.



What Are Registered Mutual Funds?

Registered Mutual Funds are mutual funds that have obtained the required registration from SEBI and comply with the applicable regulatory requirements. SEBI maintains a public database of registered mutual funds, including their registration numbers and validity details. As of September 23, 2026, SEBI's database listed 60 registered mutual funds. 

A mutual fund generally involves a sponsor, trustees, an AMC and a custodian. The AMC manages the fund's investments, while trustees oversee the fund's activities in the interest of unit holders.

Role of SEBI in Mutual Funds

The role of SEBI in mutual funds is to establish and enforce a regulatory framework designed to promote investor protection, transparency and orderly functioning of the mutual fund industry.

SEBI regulates areas such as:

  • Registration and eligibility of mutual funds

  • Governance of trustees and AMCs

  • Scheme-related disclosures

  • Investment and valuation requirements

  • Investor disclosures and reporting

  • Inspection and regulatory oversight

  • Compliance and action against defaults

The SEBI (Mutual Funds) Regulations, 1996 contain dedicated provisions covering registration, constitution and management, scheme launches, investment objectives, valuation, disclosures, inspection and enforcement.

Eligibility Requirements for Mutual Fund Registration

An applicant seeking mutual fund registration must satisfy the eligibility requirements prescribed by SEBI.

The sponsor should have a sound track record and reputation for fairness and integrity. The current regulations specify conditions relating to financial-services experience, net worth and profitability. The sponsor must also contribute or undertake to contribute at least 40% of the AMC's net worth.

Other important requirements include:

  • The applicant must satisfy the fit-and-proper criteria.

  • Trustees must be appointed in accordance with SEBI requirements.

  • An eligible AMC must be appointed to manage the mutual fund.

  • A custodian must be appointed to hold the securities and other permissible assets.

  • The sponsor and relevant personnel must satisfy specified integrity and regulatory requirements.

SEBI's current regulations also contain a separate Mutual Fund Lite framework for eligible passive schemes, with separate eligibility and net-worth provisions.

Mutual Fund Registration Process

The mutual fund registration process involves several regulatory and organisational steps.

1. Establish the Fund Structure

The sponsor first needs to establish the required mutual fund structure, including the trust and trustees, AMC and custodian. The trust deed must be registered as prescribed under the regulations.

2. Prepare the Application

The sponsor applies to SEBI using Form A, along with the required supporting information and documentation. An incomplete application may be rejected, although SEBI may provide an opportunity to complete specified formalities.

3. SEBI Examination

SEBI reviews the application, eligibility of the sponsor, proposed structure, governance arrangements and other information. SEBI may request additional information or clarification during the review.

4. Complete Regulatory Formalities

After the application is accepted in principle, the applicant completes the required arrangements, including trustee, AMC and custodian appointments and other regulatory conditions.

5. Grant of Registration

Once the prescribed requirements are satisfied and the applicable registration fee is paid, SEBI may grant the mutual fund registration certificate.

Documents Required for Mutual Fund Registration

The exact documentation depends on the applicant's structure and SEBI's requirements. Common documents and information include:

  • Form A application

  • Sponsor incorporation and constitutional documents

  • Sponsor shareholding details

  • Financial statements and financial information

  • Trust deed

  • Details of proposed trustees

  • AMC constitutional and financial documents

  • Investment management agreement

  • Custodian agreement

  • Details of directors and key personnel

  • Business and operational plan

  • Infrastructure and systems details

  • Compliance and risk-management arrangements

  • Other information or clarifications requested by SEBI

The Form A prescribed under the regulations specifically calls for information relating to the sponsor, its incorporation, objects, capital structure, shareholding and financial information. 

Fees for Mutual Fund Registration

The current Second Schedule to the SEBI (Mutual Funds) Regulations specifies:

  • Application fee: ₹5 lakh

  • Registration fee: ₹25 lakh

  • Annual fee: based on the fund's average assets under management, subject to the applicable minimum and maximum.

  • Scheme/offer-document filing fee: calculated according to the prescribed percentage and limits.

Professional consulting, legal, documentation and compliance costs are separate from statutory SEBI fees and can vary according to the structure and scope of work.

Benefits of Mutual Fund Registration

Obtaining SEBI registration provides a regulated framework for operating a mutual fund business in India. It helps establish a formal governance structure, strengthens regulatory accountability and enables the fund to operate subject to the applicable SEBI framework.

For sponsors, proper registration and compliance can also help create greater transparency for investors and provide a structured foundation for launching and managing schemes.

Why Choose Enterslice for Mutual Fund Registration?

Setting up a mutual fund involves more than submitting an application. Sponsors need to address eligibility, fund structure, documentation, governance, AMC arrangements and continuing regulatory obligations.

Enterslice provides end-to-end assistance for mutual fund registration, including eligibility assessment, documentation, regulatory application support and compliance guidance. Our team can help coordinate the registration process and identify documentation or compliance gaps before submission.

Most popular services : 

Third party administrator 

Takeover of nbfc 

Sebi regulations regarding underwriting 

peer to peer lending

payment gateway license

nbfc registration


Location: b 78, 60, Sector Rd, Sector 94, Noida, Uttar Pradesh 201313, India

Comments

Post a Comment

Popular posts from this blog

How to Become Stock Broker in India: Step-by-Step Registration Guide

Image
India's growing capital market has created opportunities for businesses and professionals looking to enter the securities industry. If you are exploring how to become stock broker in India, it is important to understand that stock broking is a regulated activity. A person or entity intending to operate as a stock broker must satisfy the applicable requirements of the Securities and Exchange Board of India (SEBI) and the relevant stock exchange. A stock broker acts as an intermediary that facilitates transactions in securities for clients and may undertake other permitted activities depending on its registration and membership. The process involves selecting an appropriate business structure, meeting eligibility conditions, obtaining relevant certifications, arranging the required financial resources, securing stock exchange membership and completing the applicable regulatory registration. What Is a Stock Broker? A stock broker is a registered intermediary that facilitates the purch...
Read more

Dematerialisation of Shares in India: Process, Documents and Benefits

Image
Holding old physical share certificates can create challenges when shareholders want to transfer securities, update ownership records or manage their investments. Dematerialisation of shares provides a practical way to convert paper certificates into electronic holdings through a Demat account. In India, the process involves a Depository Participant (DP), a recognised depository and the company or its Registrar and Transfer Agent (RTA). Shareholders must submit the prescribed documents and ensure that their ownership records are accurate before the conversion can be completed. For individuals holding inherited or older investments, understanding the procedure can help prevent documentation errors and unnecessary delays. Companies also need to understand their applicable dematerialisation obligations to maintain compliant shareholding records. What Is Dematerialisation of Shares? Dematerialisation of shares is the process of converting physical share certificates into electronic securi...
Read more

Insurance Broker License in India: Requirements, Process, Fees and Benefits

Image
  The insurance sector in India is regulated by the Insurance Regulatory and Development Authority of India (IRDAI). Businesses that want to operate as insurance brokers must obtain the applicable registration from the Authority and comply with the prescribed regulatory framework. An insurance broker license allows an eligible entity to undertake permitted insurance broking activities in accordance with IRDAI regulations. Depending on the category, a broker may provide services such as arranging insurance or reinsurance, advising clients, supporting risk management, and assisting with claims. It is important to distinguish an insurance broker from an insurance agent. An insurance agent licence generally relates to an individual or permitted entity acting as an agent for an insurer, whereas an insurance broker represents and provides services to clients within the scope permitted by the applicable regulations. What Is an Insurance Broker License? An insurance broker licence is a Ce...
Read more