Why Motilal Oswal Paused Inflows Into Its Microcap Index Fund, Should Investors Worry? | Savings and Investments News

Last Updated:January 12, 2026, 11:29 IST

Motilal Oswal Asset Management Company halts new investments in Motilal Oswal Nifty Microcap 250 Index Fund after SEBI talks on mutual fund rules.

Motilal Oswal AMC Halts New Subscriptions to Nifty Microcap 250 Index Fund

Motilal Oswal Asset Management Company (MOAMC) has temporarily stopped accepting fresh money into its Motilal Oswal Nifty Microcap 250 Index Fund after holding discussions with the Securities and Exchange Board of India (SEBI) on mutual fund classification rules.

The decision comes into effect from January 8.

Why Has the Fund House Taken This Step?

According to MOAMC, the move is linked to the fact that “micro-cap” is not recognised as a separate category under SEBI’s existing mutual fund categorisation framework.

The scheme tracks the Nifty Microcap 250 Index, which includes 250 stocks ranked beyond the top 500 listed companies in terms of market capitalisation.

MOAMC said it is currently engaging with the regulator to decide the future course of action.

No Fresh Subscriptions Allowed For Now

Until clarity emerges, the fund house has paused all fresh inflows into the scheme. This includes:

• Lump-sum investments
• Systematic Investment Plans (SIPs)
• Systematic Transfer Plans (STPs)
• Any other mode of investment

MOAMC said any transactions received after 3:00 pm on January 8 will not be processed and will be refunded as per applicable procedures.

Existing Investors Not Affected

The fund house clarified that current investors will not be impacted by this temporary pause.

The scheme will continue to be managed as per its stated investment strategy, in line with how it has been run since its launch.

What Happens Next?

MOAMC said it will share further updates once discussions with SEBI are concluded and a clear direction emerges on how the scheme will proceed.

Disclaimer: The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.

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