The cut-off timings had been revised due to staff limitations during the lockdown
The Securities and Exchange Board of India on November 6 restored the normal cut off timings for mutual funds that had been revised during the lockdown due to the coronavirus.
“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,” Assistant Manager of Sebi’s IMD Bimal Prasad Panda wrote to AMFI.
All asset management companies (AMCs) have been directed to issue a public notice highlighting the change in cut-off timings.
On October 19, SEBI had restored the buying and selling time for all schemes other than debt mutual fund schemes and conservative hybrid funds to their normal cut-off time of 3 pm.
Following this, investors looking to purchase a liquid or overnight funds were provided with the option to place their order before 12:30 pm for availing the same day’s net asset value (NAV), while it was 1 pm for the redemption of liquid and overnight funds.
Similarly, to buy or sell units of debt mutual fund schemes and conservative hybrid funds, investors had the timings to place their orders before 1 pm only.
The capital markets regulator had trimmed the cut-off timing for purchases and redemption of mutual fund units in April amid the country-wide lockdown.
First Published on Nov 6, 2020 06:19 pm