SEBI Reinstates Earlier Cut Off Time For Mutual Funds

This article was originally published on this site

For Quick Alerts
Subscribe Now  
For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts
oi-Roshni Agarwal

| Published: Friday, November 6, 2020, 20:59 [IST]

After the currency and bond market timings have been extended, for mutual funds also the market watchdog SEBI has reinstated the pre-Covid cut off timings with effect from November 9. In lieu of the development, the SEBI has sent a letter to the mutual fund body Association of Mutual Funds of India (AMFI).

In the wake of Covid 19 crisis, SEBI in April this year had curtailed the cut-off time for mutual funds from 3 pm to 1 pm and for overnight and liquid schemes from 1:30 pm to 12:30 pm. For all of the schemes except conservative hybrid and debt schemes, SEBI had reinstated the earlier cut-off timings on October 19. And now for these left out mutual funds schemes also the earlier cut-off timings have been restored.

So, now the cut of time for purchase of liquid as well as overnight funds stands restored to 1:30 pm from 12:30 pm. For redemption, cut off time for liquid, debt and equity funds would be 3pm.

The cut-off time typically ascertains what NAV or net asset value you get for purchasing or selling units of your mutual fund scheme. And this typically depends on the time you place your application for purchase or redemption of mutual fund unit. And this is mutual fund parlance is referred as cut off timing.

GoodReturns.in

For investment related articles, business news and mutual fund advise
Allow Notifications
You have already subscribed