Description

BSE activates SMART Switch facility for Union Consumption Fund NFO, enabling automatic switches from Union Overnight Fund to the new consumption-focused fund.

Summary

BSE has activated the SMART Switch facility for Union Consumption Fund’s New Fund Offer (NFO) on the BSE StAR MF platform. This facility enables automatic switching of investments from Union Overnight Fund (both Direct and Regular plans) into the Union Consumption Fund upon NFO completion. The switch mechanism allows investors who subscribed to the NFO to have their investments automatically transferred from the overnight fund parking scheme to the target consumption fund.

Key Points

  • SMART Switch facility activated for Union Consumption Fund NFO
  • Two switch routes configured: Direct Plan and Regular Plan
  • Subscription received in Union Overnight Fund (both plans) will auto-switch to Union Consumption Fund
  • Switch-in transactions will be reported to respective plan categories (Regular/Direct)
  • Operational on BSE StAR MF platform

Regulatory Changes

No regulatory changes. This is an operational facility activation for a specific mutual fund NFO.

Compliance Requirements

  • Fund houses and intermediaries must ensure proper mapping of switch transactions
  • Switch-in reporting must correctly identify target plan (Direct or Regular)
  • Platform participants should configure systems to handle automatic switch processing

Important Dates

  • Effective Date: December 2, 2025 (circular date)
  • Switch activation applicable for Union Consumption Fund NFO period

Impact Assessment

Minimal market impact. This is a technical operational facility for a single mutual fund NFO. The SMART Switch mechanism provides convenience to NFO subscribers by automatically moving investments from the temporary parking fund (Union Overnight Fund) to the actual target fund (Union Consumption Fund) without requiring manual intervention. Impact limited to Union Mutual Fund investors participating in the Consumption Fund NFO.

Impact Justification

Operational circular for mutual fund switch facility activation with limited market-wide impact, relevant only to investors in Union Consumption Fund NFO