The market regulator SEBI has changed the timing of the purchase and sale of equity mutual funds. The new rule will come into effect from 19 October 2020. This will not include debt mutual fund schemes and conservative hybrid funds.
Mumbai. The stock market regulator Securities and Exchange Board of India (SEBI) has changed the time of purchase and sale of Equity Mutual Fund to 3 pm once again. Now after this change, investors will get more time to buy and sell mutual funds. However, the timing of purchase and sale of debt mutual fund schemes and conservative hybrid funds has not been changed.
The new rule will be applicable from October 19
This new time table of buying and selling of mutual funds will be applicable from October 19. Informing about this decision of SEBI, Nilesh Shah, chairman of Association of Mutual Funds in India (AMFI), which regulates mutual funds, tweeted that Shah said that the cutoff timing of equity mutual funds has been changed.
Nilesh Shah tweeted, now it will be three o’clock for both, whether to buy or sell a unit of equity mutual fund. The cut-off time for subscription and redemption of all schemes is again at 3 pm, except for those funds which fall under the category of debt and conservative hybrid funds. This will be applicable for all schemes of equity mutual funds.
But the timing of the purchase and sale of debt schemes and conservative hybrid funds will not change until further orders of SEBI. Let us know that Sebi changed the time of 3 o’clock to 12.30 shortly before. Now it is being brought again at the same old time. The advantage of this is that investors will now have more time to get the NAV (Net Asset Value) of that day.
SEBI reduced the cut-off time for the purchase and sale of mutual fund units due to Corona virus epidemic in April. It also included liquid and overnight schemes. The time for buying and selling liquid and overnight funds is from 12.30 to 1.30. At the same time, for debt and conservative hybrid funds it is 1 o’clock.