Cut-off time for MFs to be restored from Monday: Sebi

By: |
November 6, 2020 10:18 PM

The timings were revised during the lockdown due to the coronavirus pandemic.

Currently, companies are given 18 months to bring up the minimum public shareholding to 10% and 36 months to reach 25%.Currently, companies are given 18 months to bring up the minimum public shareholding to 10% and 36 months to reach 25%.

Markets regulator Sebi has restored the cut-off timing for buying and selling of mutual fund units to 3 pm 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 (Net Asset Value) 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, November 9, it added.

Further, all asset management companies (AMCs) 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 pm. 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 (NAV) for mutual fund schemes to 1 pm from 3 pm. For liquid and overnight funds, the time was advanced to 12.30 pm from 1.30 pm.

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