The step to reduce market hours has been taken by SEBI to safeguard the people associated with equity, MF industry, as stock markets continue to function amid Covid-19 lockdown.
To protect employees and stakeholders associated with equity and mutual fund (MF) industry from prolonged exposure under the shadow of highly contagious Novel Coronavirus Covid-19, market regulator Securities and Exchange Board of India (SEBI) has reduced the cut-off timing for all MF transactions executed between April 7 and April 17 irrespective of ticket size of the transactions.
The step to reduce market hours has been taken by the market regulator to safeguard the concerned people, as stock markets continue to function even after all non-essential activities were stopped after nationwide lockdown was imposed to contain the spread of the highly infectious Covid-19.
Normally, to buy MF units at the same day’s Net Asset Value (NAV) on a business day, the cut-off investment time for all non-liquid fund transactions of values less than Rs 2 lakh (in a single scheme) is 3 pm. To get the same day’s NAV on transactions above Rs 2 lakh, an investor needs to ensure that the money gets transferred to AMC’s account within the cut off time of 3 pm.
To sell MF units at the same day’s NAV on a normal business day also, the cut off transaction time is 3 pm.
For transactions in liquid and overnight funds on a normal business day, applications received till 1.30 pm fetch NAV of previous day, while applications received after 1.30 pm fetch NAV of same day.
To minimise the Covid-19 risk, AMFI has conveyed the reduced timings as given below:
Purchase: For purchase, following changes have been made in cut off time.
a) Changed from 1.30 pm to 12.30 pm for liquid and overnight schemes
b) For other than Liquid & Overnight schemes, changed from 3.00 pm to 1.00 pm
Redemption: For redemption, the cut off time has been changed from 3:00 pm to 1:00 pm for all schemes.
Switch: For switching of funds from one scheme to another, the cut off time has been changed from 3:00 pm to 1:00 pm for all schemes.
So, if you want to avail same day’s NAV on your MF transactions till April 17, make sure that you adhere to the changed timings.