Finance
2 min read
1 Finance Secures SEBI Nod for First MF Lite Asset Manager
Wealth-tech firm 1 Finance received SEBI in-principle approval to set up India's first AMC under the MF Lite framework for passive schemes.
Why in the News?
Indian wealth-tech and financial advisory firm **1 Finance** has received **in-principle approval** from the Securities and Exchange Board of India (**SEBI**) to set up an Asset Management Company (AMC) under the Mutual Funds Lite (**MF Lite**) framework. It is set to become the first AMC in India to operate under this new framework.
Key Features / Major Points:
- Launch Timeline: Subject to meeting final regulatory guidelines and operational setup, 1 Finance aims to launch its asset management operations in Q4 of FY2026-27 (by March 2027).
- About the MF Lite Framework: Introduced by SEBI in December 2024, the MF Lite framework lowers entry barriers and compliance costs to encourage wider participation in passive investments.
- Product Focus: Unlike conventional AMC licenses that allow both active and passive fund management, the MF Lite license is restricted purely to **passive investment products** such as Index Funds and Exchange-Traded Funds (ETFs).
- AUA Scale: 1 Finance currently oversees over **INR 170 billion** (approx. USD 1.8 billion) in assets under advice.
Static GK Facts:
- SEBI (Securities and Exchange Board of India): The apex regulatory body for securities and commodity markets in India, headquartered in Mumbai.
- Establishment of SEBI: Non-statutory body in 1988; given full statutory powers on January 30, 1992, under the SEBI Act.
- Passive Funds: Investment vehicles that match the performance and holdings of a target index or benchmark without active stock-picking.
One-Liner Quiz (All Competitive Exams):
Q: Which company received SEBI in-principle approval to set up India's first AMC under the MF Lite framework?
A: 1 Finance
Q: In which year did SEBI introduce the MF Lite framework for passive mutual fund schemes?
A: December 2024
Q: What type of mutual fund products can an AMC operate under the MF Lite license?
A: Passive schemes only (such as Index Funds and ETFs)
Q: Where is the headquarters of SEBI located?
A: Mumbai, Maharashtra
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