Stocks

Cut-off time restored to 3 pm for buying/selling MF units

Our Bureau Mumbai | Updated on October 15, 2020 Published on October 15, 2020

Investors will get same day’s NAV

SEBI has restored the cut-off timing for buying and selling of mutual fund units to 3 pm, effective Monday.

In a tweet Nilesh Shah, Chairman, Association of Mutual Funds in India, said cut-off timing for both subscription and redemption for all schemes other than those categorised as debt schemes and conservative hybrid fund is being restored to original cut-off timing of 3 pm, effective, October 19.

Pandemic-triggered timing

In April, SEBI had temporarily changed the cut-off timings for buying and redeeming of mutual funds units, in line with RBI’s reduced trading hours for money markets and forex markets due to the pandemic. Investors had to put in their transaction requests early to avoid delays in purchases and redemptions by one working day.

According to the communication sent then by AMFI to fund houses, for liquid and overnight funds, the cut-off time for getting previous day’s NAV was advanced to 12.30 pm from 1.30 pm. If the order is placed before 12.30 pm, then the previous day’s NAV would apply. An order placed after 12.30 pm, will have the same day’s NAV.

For purchase of other mutual funds (including debt, equity and hybrid), the cut off time was advanced to 1 pm from 3 pm. If an order is placed before 1 pm, it will take into account the same day’s NAV. If placed after 1 pm, the next day’s NAV will be applicable. To get the same day's NAV for redemption, the cut-off timing for all mutual funds was advanced from 3 pm to 1 pm.

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Published on October 15, 2020
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