Description

KOTAK Mutual Fund will offer KOTAK NIFTY CHEMICALS ETF NFO from October 23, 2025 to November 06, 2025 on BSE StAR MF Platform with tentative allotment on November 12, 2025.

Summary

KOTAK Mutual Fund is launching KOTAK NIFTY CHEMICALS ETF as a New Fund Offer (NFO) on the BSE StAR MF Platform. The NFO period runs from October 23, 2025 to November 06, 2025, with both regular and direct plan options available. The tentative allotment date is November 12, 2025. Members must ensure clear funds are available in ICCL Account by 6:00 pm on November 11, 2025.

Key Points

  • Two schemes offered: KOTAK NIFTY CHEMICALS ETF and KOTAK NIFTY CHEMICALS ETF - DIRECT PLAN (both under EQUITY category)
  • NFO period: October 23, 2025 to November 06, 2025
  • Extended trading till midnight on November 06, 2025 for lumpsum purchases only
  • Transactions without client-initiated funds by 9:00 AM on T+1 will be cancelled
  • Transactions with initiated payment remain pending until 3:00 PM on last day of fund payout or T+5, whichever is earlier
  • CC with N flag reported to RTA/AMC for cancelled transactions
  • Cheques and OTM payments acceptable during NFO period subject to clear funds receipt

Regulatory Changes

No regulatory changes introduced. This is a standard NFO announcement following existing BSE StAR MF Platform procedures.

Compliance Requirements

  • Members must ensure clients initiate funds by 9:00 AM on T+1 day to avoid cancellation
  • Clear funds must be available in ICCL Account by 6:00 pm on November 11, 2025
  • For cheques and OTM payments, clear funds must be received in ICCL account by 6:00 pm on November 11, 2025 to avail unit allotment
  • Members must handle cancelled transaction reporting (CC with N flag) to RTA/AMC

Important Dates

  • October 23, 2025: NFO opening date
  • November 06, 2025: NFO closing date (extended till midnight for lumpsum purchases)
  • November 11, 2025: Deadline for clear funds in ICCL Account (by 6:00 pm)
  • November 12, 2025: Tentative allotment date
  • T+1 day (9:00 AM): Deadline for client fund initiation
  • T+5 or last day of NFO (3:00 PM): Pending transaction deadline

Impact Assessment

Market Impact: Low - This is a routine NFO launch for a sector-specific ETF tracking NIFTY CHEMICALS index. It provides investors with a new passive investment option in the chemicals sector but does not affect existing market operations or trading mechanisms.

Operational Impact: Low - Standard NFO operational procedures apply. Members familiar with BSE StAR MF Platform NFO processes will follow established protocols for fund collection, transaction management, and allotment coordination. The extended trading hours till midnight on closing day is a standard feature for NFO lumpsum purchases.

Impact Justification

Routine NFO announcement for a new ETF product on BSE StAR MF Platform with standard operational procedures and timelines.