Description

BSE activates AUTO Switch facility for LIC MF Consumption Fund NFO, enabling automatic switching from LIC MF Overnight Fund to the Consumption Fund for both regular and direct plans.

Summary

BSE has activated the AUTO Switch facility for LIC MF CONSUMPTION FUND - NFO on the BSE StAR MF platform. This facility allows investors subscribing to the NFO to automatically switch their investments from LIC MF Overnight Fund to LIC MF Consumption Fund upon completion of the NFO period. The facility is available for both Regular Plan-Growth and Direct Plan-Growth options.

Key Points

  • AUTO Switch facility activated for LIC MF Consumption Fund NFO
  • Two subscription schemes available with automatic switching from LIC MF Overnight Fund
  • Regular Plan-Growth: Subscriptions received in LIC MF Overnight Fund will be reported to AMC/RTA as LIC MF Consumption Fund - Regular Plan-Growth
  • Direct Plan-Growth: Subscriptions received in LIC MF Overnight Fund will be reported to AMC/RTA as LIC MF Consumption Fund - Direct Plan-Growth
  • Transaction reporting will consolidate the switched amounts to the appropriate Consumption Fund plan

Regulatory Changes

No regulatory changes introduced. This is an operational facility activation on the BSE StAR MF platform.

Compliance Requirements

  • Investors opting for AUTO Switch facility should ensure subscriptions are made through the designated overnight fund schemes
  • AMC/RTA will receive transaction reports for the target Consumption Fund schemes as per the mapping provided
  • Market participants should update their systems to recognize the AUTO Switch transaction flow

Important Dates

  • Circular Date: October 30, 2025
  • Effective Date: Immediate (facility now active on BSE StAR MF platform)

Impact Assessment

Market Impact: Minimal - This is a platform feature enhancement for a specific NFO.

Operational Impact: Low - Affects only investors who opt for the AUTO Switch facility during the LIC MF Consumption Fund NFO subscription period. The facility provides convenience by automatically parking NFO subscriptions in an overnight fund and switching them to the target fund upon NFO completion.

Investor Impact: Positive for participants - Simplifies the NFO subscription process by eliminating the need for manual switching post-NFO closure, while ensuring funds remain invested in a liquid overnight fund during the NFO period.

Impact Justification

Operational update for mutual fund platform facility activation; affects only investors participating in LIC MF Consumption Fund NFO with auto-switch option