Description

BSE extends delivery instruction deadline for overnight mutual fund scheme redemptions from 7:15 PM to 7:30 PM, effective immediately.

Summary

BSE has updated the cut-off timings for redemption and switch orders in overnight mutual fund schemes. The delivery instruction deadline has been extended from 7:15 PM to 7:30 PM, providing an additional 15 minutes for processing. This change is effective immediately and follows SEBI circular SEBI/HO/IMD/PoD2/P/CIR/2025/56 dated April 22, 2025.

Key Points

  • Cut-off time for delivery instructions extended from 7:15 PM to 7:30 PM
  • Applies specifically to redemption/switch orders of overnight schemes
  • Change is effective immediately from August 25, 2025
  • References previous Exchange Notice No. 20250522-16 dated May 22, 2025
  • Based on SEBI circular dated April 22, 2025

Regulatory Changes

Revised operational timings for mutual fund overnight schemes:

  • Previous deadline: 7:15 PM for delivery instructions
  • New deadline: 7:30 PM for delivery instructions
  • Provides additional 15-minute window for processing redemption orders

Compliance Requirements

  • Mutual fund intermediaries must adjust their systems to accommodate the new 7:30 PM cut-off
  • All redemption/switch order processing systems need immediate updates
  • Market participants should ensure compliance with revised timings

Important Dates

  • Effective Date: August 25, 2025 (immediate effect)
  • Previous Notice: May 22, 2025 (Exchange Notice No. 20250522-16)
  • SEBI Circular Date: April 22, 2025

Impact Assessment

This operational enhancement provides greater flexibility for mutual fund investors and intermediaries by extending the processing window. The 15-minute extension allows for better order management and reduces the risk of missed redemption deadlines. Impact is primarily operational, affecting mutual fund processing systems and investor convenience rather than market prices or trading volumes.

Impact Justification

Operational change affecting mutual fund redemption processes with immediate effect