Description

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

Summary

BSE has activated the SMART Switch facility for Union Consumption Fund New Fund Offer (NFO) on the BSE StAR MF platform. This facility enables investors who subscribed to the NFO through smart switch from Union Overnight Fund to have their transactions automatically processed. The switch-in transactions will be reported to the respective Regular Plan or Direct Plan of Union Consumption Fund based on the original subscription plan.

Key Points

  • SMART Switch facility activated for Union Consumption Fund NFO
  • Two switch pathways established:
    • From Union Overnight Fund Direct Plan Growth to Union Consumption Fund Regular Plan Growth
    • From Union Overnight Fund Regular Plan Growth to Union Consumption Fund Direct Plan Growth
  • Facility operational on BSE StAR MF platform
  • Automatic processing of subscriptions received during NFO period

Regulatory Changes

No regulatory changes. This is an operational activation of an existing facility.

Compliance Requirements

  • Market participants and investors using BSE StAR MF platform should note the activated switch facility
  • Switch-in transactions will be automatically reported to the appropriate plan based on original subscription
  • No additional action required from investors who already subscribed during NFO

Important Dates

  • Activation Date: December 2, 2025
  • Circular Date: December 2, 2025

Impact Assessment

Market Impact: Minimal. This is a procedural notification affecting only investors who participated in Union Consumption Fund NFO through the smart switch facility.

Operational Impact: Low. The activation streamlines the switching process for Union MF investors on BSE StAR MF platform, providing automated transition from overnight fund to consumption fund.

Investor Impact: Positive for affected investors as it enables seamless execution of their NFO subscriptions made through smart switch mechanism, with plan mapping preserved as per original subscription intent.

Impact Justification

Procedural notification for mutual fund switching facility activation affecting only specific Union MF schemes with no broader market impact