Publish Date:
SEBI has asked mutual funds to temporarily revise cut-off timing for both subscription and redemption in Mutual Fund schemes.
Taking into account the impact of the revised trading hours for various markets as per the RBI Press Release dated April 03, 2020, mutual funds have been asked to temporarily advance the cut-off timing for both subscription and redemption in mutual fund schemes for a temporary period irrespective of its ticket size.
The revised cut-off timing is for a temporary period from April 7, 2020 (Tuesday) to April 17, 2020 (Friday) [BOTH DAYS INCLUSIVE].
This move comes in line with RBI’s circular dated April 3, reducing trading hours for money markets and forex markets. The RBI has decided to cut trading hours for foreign exchange and money markets products following challenges posed by lockdowns. The trading hours for forex market, Gilts market and various money market instruments have now been shortened to 10 AM-2 PM from 9 AM-5 PM.
Investors will have to put in their transaction requests early to avoid delays in purchases and redemptions by one working day.
In case of subscription
– For Liquid and Overnight Funds – 12:30 p.m.
– For Schemes other than Liquid and Overnight Funds – 01:00 p.m.
In case of Redemption
– For Liquid and Overnight Funds – 01:00 p.m.
– For Schemes other than Liquid and Overnight Funds – 01:00 p.m.
With respect to above change, the existing cut off time and temporary new cut of timings will be as follow:
|
|
Transaction Type |
Scheme Type |
Current cut off time |
New cut off timings |
|
1 |
Subscription |
Liquid and Overnight schemes |
1.30 PM |
12.30 PM |
|
2 |
Subscription |
All schemes other than Liquid and Overnight schemes |
3.00 PM |
1.00 PM |
|
3 |
Redemption |
For all schemes, including Liquid and Overnight schemes |
3.00 PM |
1.00 PM |
|
4 |
Switch-in / Switch-Out |
For all schemes, including Liquid and Overnight schemes |
3.00 PM |
1.00 PM |
Accordingly, if the order for liquid funds and overnight funds is placed before 12.30 pm, then the previous day’s NAV will apply. An order placed after 12.30 PM, will have the same day’s NAV.
If an order for purchase of other mutual funds (including debt, equity and hybrid) is placed before 1 pm, it will take into account the same day's NAV. If order is 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 has been advanced from 3 pm to 1 pm, for all mutual funds.