AMFI Suspends Stable Money's Mutual Fund Distribution Arm Until November 2026

AMFI Suspends Stable Finserv's Mutual Fund Distribution Activities

The Association of Mutual Funds in India (AMFI) has taken disciplinary action against Stable Finserv, the distribution arm of fintech startup Stable Money, suspending its mutual fund distribution activities for a period of six months.

The suspension, which comes into effect from May 21 to November 20, 2026, will prevent Stable Finserv from onboarding new investors and facilitating fresh mutual fund investments during this period. However, existing investments and services are not expected to be affected by this decision.

The reasons behind the suspension have not been immediately disclosed. AMFI, the industry body representing mutual funds in India, oversees registration and conduct standards for mutual fund distributors and can take disciplinary action against entities found to be in violation of its rules and code of conduct.

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Stable Money, the parent company of Stable Finserv, has raised significant funding in the past. In June 2025, the company secured $20 million (Rs 173 crore) in a Series B round led by Nandan Nilekani's Fundamentum Partnership, with investment from Aditya Birla Ventures. Existing investors Z47, RTP Global, and Lightspeed also participated in this funding round.

Founded in 2022 by former Navi Mutual Fund CEO Saurabh Jain and Harish Reddy, Stable Money started as a digital fixed deposit (FD) investment platform and later added bonds after securing its Online Bond Platform Provider (OBPP) licence from BSE in early 2024. The company claims to have more than Rs 3,000 crore in assets under management and over 20 lakh customers.