The SEBI (Mutual Funds) Regulations 2026 replacs the existing framework with a comprehensive, principle-based regime. These overhaul registration, eligibility, governance, and net worth norms for sponsors, trustees, asset management companies, and custodians, while strengthening trustee oversight, conflict-of-interest controls, disclosures, valuation standards, and investor grievance mechanisms. A new regime for Specialized Investment Funds is introduced with higher risk disclosures and minimum investment thresholds, alongside a differentiated “Mutual Fund Lite” framework tailored for passive products with proportionate compliance. Detailed provisions govern scheme launch, advertisements, listing, winding up, investments, borrowing limits, NAV computation, payouts, stress testing, and market abuse deterrence.