Securities and Exchange Board of India (SEBI) has decided to allow mutual fund houses to provide instant redemption of liquid funds. In a circular issued by SEBI, it has stated that Asset Management Companies (AMCs) can offer instant access facility (through online mode) of up to Rs. 50,000 or 90% of folio value, whichever is lower, by applying lower of previous day Net Asset Value (NAV) or prospective NAV. It has also added that AMCs would not be allowed to borrow to meet the redemption requirement.