Sebi restores pre-covid cut-off time for mutual fund transactions

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The Securities and Exchange Board of India (Sebi) has restored the pre-covid cut-off timings of mutual funds, effective 9 November. The regulator has sent a letter to industry body AMFI in this regard, a copy of which was seen by Mint.

In April, Sebi had reduced the cut-off timings of all mutual funds to 1 pm from 3 pm and for liquid and overnight schemes to 12.30 pm from 1.30 pm.

On 19 October, Sebi had restored the cut-off timings to 3 pm for all schemes except for debt schemes and conservative hybrid schemes. The present letter brings back the cut-off time to 3 pm for debt and conservative hybrid funds as well. The cut-off time for purchase of liquid and overnight funds would stand restored from 12.30 pm to 1.30 pm. The redemption cut-off time for equity, debt and liquid funds would stand restored to 3 pm. The Sebi action follows an RBI move extending debt market timings for most securities to 3.30 pm, also with effect from 9 November.

“MF investors are not greatly affected by such changes. However, they will get more flexibility with the time of making their investments, which is helpful,” said Amol Joshi, founder, Plan Rupee Investment Services.

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