An interview with Dr. Montek Singh Ahluwalia (former Deputy Chairman, erstwhile Planning Commission)

Evolution of Regulatory Framework for SMEs

Small and Medium Enterprises (SMEs) play a critical role in India’s economic growth, employment generation and innovation. Recognising the need to provide SMEs with efficient access to capital markets while balancing investor protection, SEBI introduced a dedicated regulatory framework for SME fundraising in 2010. Over the years, the framework has evolved through regulations, guidelines, circulars and periodic reviews covering SME exchanges, market making, listing norms, institutional trading platforms and governance standards. The latest review in 2025 reflects SEBI’s continued efforts to strengthen the SME ecosystem in line with the growing maturity of India’s capital markets.

Mutual Fund Lite: A New Chapter in India’s Mutual Fund Regulation

Introduced to simplify and streamline the launch and management of passively managed mutual fund schemes, the Mutual Fund Lite (MF Lite) framework launched in 2024-25, adopted a proportionate regulatory approach aligned with the lower-risk nature of passive funds. This initiative aimed to make passive investing more accessible and cost-effective for both investors and asset management companies (AMCs).