Amfi asks Sebi to restore mutual fund cut-off time to 3 pm1 min read . Updated: 08 Oct 2020, 02:58 PM IST
- Sebi had reduced the cut-off time for getting the same day's net asset value (NAV) for schemes other than liquid and overnight from 3 pm to 1 pm in April.
The Association of Mutual Funds in India (Amfi) has asked markets regulator the Securities and Exchange Board of India (Sebi) to restore the cut-off time for mutual fund purchases and redemptions to 3 pm, the industry body’s chief executive officer N.S. Venkatesh said in response to a Mint question on Thursday.
Sebi had reduced the cut-off time for getting the same day's net asset value (NAV) for schemes other than liquid and overnight from 3 pm to 1 pm in April on account of the covid-19 pandemic and its disruptions to the financial services. For liquid and overnight schemes, the cut-off time was reduced from 1.30 pm to 12.30 pm.
"Considering that the banking operations are now gradually getting back to normal after the lockdown imposed was withdrawn by the local authorities, and since the stock exchange trading is functioning normally, it is proposed to restore or revert to the normal cut-off timings of 3 pm," said an AMFI communication, a copy of which has been seen by Mint. The communication, however, confined itself to equity and hybrid schemes, leaving debt funds out of its purview.
According to Viral Bhatt, founder of Money Mantra, a mutual fund distribution firm, mutual fund cut-off timing does not matter for the long term investors. “I don't think a change will make a big difference," he said.