Cut-Off Time For Mutual Funds To Be Restored From Monday, Says SEBI
The regulator had earlier reduced cut-off time for availing the same day’s net asset value for schemes to 1 p.m. from 3 p.m.
The Securities and Exchange Board of India has restored the cut-off timing for buying and selling of mutual fund units to 3 p.m. from Monday.
The timings were revised during the lockdown due to the coronavirus pandemic.
"It is decided that the cut-off timings for applicability of NAV for both subscription and redemption for all schemes, may be restored to normal cut-off timings on accordance with various circulars issued by SEBI in this regard," the regulator said in a letter to industry body Amfi on Friday.
The change would be effective from Monday, Nov. 9, it added.
Further, all asset management companies have been asked to issue a public notice highlighting the change in cut-off timings. Also, they need to publish about the timings prominently on their websites.
The regulator, last month reinstated the cut-off timing for transactions in equity mutual fund units to 3 p.m. However, the existing truncated cut-off time continued for debt and conservative hybrid funds.
Earlier in April, SEBI had reduced cut-off time for subscription and redemption of mutual funds, including liquid and overnight schemes due to coronavirus pandemic.
The regulator had reduced cut-off time for availing the same day's net asset value for mutual fund schemes to 1 p.m. from 3 p.m. For liquid and overnight funds, the time was advanced to 12:30 p.m. from 1:30 p.m.