Capital markets regulator Sebi on Friday issued new conditions for intraday borrowing by mutual funds to address temporary liquidity mismatches while putting in place safeguards to ensure investor protection. The new framework will come into effect from April 1. Sebi said mutual funds often face intraday timing mismatches between redemption payouts and inflows from investments. Typically, redemption payments to investors are processed during the morning hours of the settlement day (T+1), while funds from instruments such as TREPS and reverse repo transactions are received later in the evening.