InvestorQ : What is the implication of SEBI shifting the Mutual Fund cut-off timings from 3 pm to 1 pm? How does it impact mutual fund transactions?
Khushi Patel made post

What is the implication of SEBI shifting the Mutual Fund cut-off timings from 3 pm to 1 pm? How does it impact mutual fund transactions?

Answer
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Anjana Aiyar answered.
6 months ago


In a move that was already being anticipated in mutual fund circles, SEBI has decided to curtail the cut-off timings for equity and debt mutual funds from 3 pm to 1 pm. For liquid funds, the cut off has been reduced from 1.30 pm to 12.30 pm. That means; in the case of equity schemes, the investor will have to give the application before 1 pm to get the same day NAV. Else, you get the next day NAV. This will make it difficult for equity mutual fund investors to time their purchase / sale precisely based on the prevailing market conditions. Mutual funds had protested that the existing timings were inducing volatility in the market and in NAVs. This is a temporary measure for COVID-19 and it remains to be seen if it is withdrawn after the lockdown comes to an end.