The Securities and Exchange Board of India (SEBI) is considering the implementation of lighter regulations for passive funds. This move aims to facilitate the growth of passive investment vehicles such as index funds and exchange-traded funds (ETFs). The proposal signifies SEBI’s recognition of the growing popularity and importance of passive investment options in India’s financial markets. By streamlining regulations, SEBI seeks to encourage the development of these funds and make them more accessible to investors. Passive funds are known for their cost-effectiveness and ability to track market indices, making them a valuable addition to investors’ portfolios. This development underscores the dynamic nature of India’s regulatory landscape and the ongoing efforts to promote innovation and diversification in the investment sector.