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Mutual fund cut-off timings advanced temporarily

This move comes after the RBI put out a circular changing the trading hours. RBI had issued a circular on April 3, reducing trading hours in the debt market.

ET Online|
Last Updated: Apr 30, 2020, 12.03 PM IST
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Mutual funds have temporarily changed the cut-off timings for buying and redeeming from April 7 to April 17, in line with RBI’s reduced trading hours for money markets and forex markets. Investors will have to put in their transaction requests early to avoid delays in purchases and redemptions by one working day.

According to the commuication sent by AMFI to fund houses, for liquid and overnight funds, the cut-off time for getting previous day’s NAV has been advanced to 12.30 PM from 1.30 PM. If the order is placed before 12.30 pm, then the previous day’s NAV will apply. An order placed after 12.30 PM, will have the same day’s NAV.

For purchase of other mutual funds (including debt, equity and hybrid), the cut off time has been advanced to 1 pm from 3 pm. If an order is placed before 1 pm, it will take into account the same day's NAV. If placed after 1 pm, the next day’s NAV will be applicable.

To get the same day's NAV for redemption, the cut-off timing for all mutual funds has been advanced from 3 pm to 1 pm. The changes will be effective from April 7, 2020 (Tuesday) to April 17, 2020 (Friday), both days inclusive.

The AMFI communication said:

"In case of subscription (Purchase & Switch-In)
- For Liquid and Overnight Funds – 12:30 p.m.
- For other than Liquid and Overnight Funds – 01:00 p.m.

In case of Redemption & Switch Out
- For Liquid and Overnight Funds – 01:00 p.m.
- For other than Liquid and Overnight Funds – 01:00 p.m"

The communication also said, ".All other provisions of various SEBI Circulars related to applicability of NAV in case of both subscription and redemption shall remain unchanged."
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