Sebi extends reduced cut-off time for MFs subscription, redemption till further notice

By: |
May 5, 2020 4:03 PM

For subscriptions to liquid and overnight schemes, the regulator has revised the time to 12.30 pm, while the same for other schemes is 1 pm.

With respect to redemption of liquid, overnight and other mutual funds, Sebi has revised the timing to 1 pm.With respect to redemption of liquid, overnight and other mutual funds, Sebi has revised the timing to 1 pm.

Market regulator Sebi has decided to extend the reduced cut-off time for subscription and redemption of mutual funds, including liquid and overnight schemes, till further notice, amid the ongoing nationwide lockdown to deal with the coronavirus pandemic.

Earlier, the revised timings were effective from April 7 to April 30.

The move follows the Reserve Bank of India (RBI) extending reduced trading hours for debt market.

“Sebi has decided to extend the reduced cut-off timing for both subscription and redemption of mutual fund schemes till further notice,” according to a communication from the Association of Mutual Funds in India (Amfi).

For subscriptions to liquid and overnight schemes, the regulator has revised the time to 12.30 pm, while the same for other schemes is 1 pm.

With respect to redemption of liquid, overnight and other mutual funds, Sebi has revised the timing to 1 pm.

In separate statements, BSE and NSE also announced the revised timings.

Liquid funds invest in cash assets such as treasury bills, certificates of deposit and commercial paper for shorter horizon and overnight funds invest in securities with maturity of one day.

Industry body Amfi had advised investors to transact through various online modes such as mobile applications and websites among others.

On Thursday, the RBI extended the truncated trading hours of debt as well as currency markets till further notice.

“In view of persisting operational dislocations and elevated levels of health risks warranting continuing restrictions on movement, work from home arrangements and business continuity plans, it has been decided that the amended trading hours i e, from 10.00 am to 2.00 pm for RBI-regulated markets…shall be extended till further notice,” it said.

The government on Friday announced that a “limited” lockdown, including suspension of inter-state travel, air and train services, will continue to remain in force for another two weeks throughout the country from May 4 but some activities would be allowed after classifying areas into Red, Orange and Green zones.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Cotton prices may remain under pressure on huge carryover stocks
2Deregulation? Govt imposes stock limits on onion
3Britannia Industries Rating: Buy- Performance was in line with estimates