Description
KOTAK Mutual Fund launches KOTAK NIFTY NEXT 50 ETF NFO on BSE StAR MF Platform from December 18, 2025 to January 01, 2026 with allotment on January 07, 2026.
Summary
KOTAK Mutual Fund will offer KOTAK NIFTY NEXT 50 ETF as a New Fund Offering (NFO) on the BSE StAR MF Platform from December 18, 2025 to January 01, 2026. The scheme will be available in both regular and direct plan variants under the equity category, with tentative allotment scheduled for January 07, 2026. The NFO includes specific timelines for fund payment, transaction cancellation rules, and extended trading hours till midnight on the last day for lumpsum purchases.
Key Points
- KOTAK NIFTY NEXT 50 ETF NFO available in two variants: Regular Plan and Direct Plan
- Both schemes categorized under EQUITY segment
- NFO period: December 18, 2025 to January 01, 2026
- Tentative allotment date: January 07, 2026
- Transactions without client-initiated funds by 9:00 AM on T+1 will be cancelled with N flag reported to RTA/AMC
- Pending transactions with initiated payments remain valid till 3:00 PM on last NFO payout date or T+5, whichever is earlier
- Clear funds must be available in ICCL Account by 6:00 PM on January 06, 2026
- Cheques and OTM payments accepted subject to clear funds receipt by January 06, 2026 at 6:00 PM
- ETF NFO extended till midnight on January 01, 2026 for lumpsum purchases only
Regulatory Changes
No regulatory changes introduced. This is a standard NFO launch notification following existing BSE StAR MF platform guidelines.
Compliance Requirements
- Members must ensure client fund initiation by 9:00 AM on T+1 day to avoid transaction cancellation
- Clear funds must be available in ICCL Account by 6:00 PM on January 06, 2026 for unit allotment
- For switches during NFO period, funds under NFO scheme must be received on or before allotment date (January 07, 2026) to be considered for allotment
- Members must report cancelled transactions (CC with N flag) to RTA/AMC for non-funded transactions
- Cheque and OTM payments must result in clear funds by the specified deadline
Important Dates
- December 18, 2025: NFO opening date
- January 01, 2026: NFO closing date (extended till midnight for lumpsum purchases)
- T+1 day, 9:00 AM: Deadline for client fund initiation to avoid cancellation
- January 06, 2026, 6:00 PM: Deadline for clear funds in ICCL Account
- January 07, 2026: Tentative allotment date for both schemes
- T+5 or NFO last payout date, 3:00 PM: Final deadline for pending funded transactions (whichever is earlier)
Impact Assessment
Market Impact: Low - This is a routine ETF NFO launch that expands investment options for market participants interested in Nifty Next 50 index exposure through KOTAK Mutual Fund.
Operational Impact: Low to Medium for BSE StAR MF platform members - Standard NFO operational procedures apply with clearly defined payment timelines. Members need to ensure compliance with fund settlement deadlines and manage client transaction cancellations for non-funded orders.
Investor Impact: Low - Provides additional ETF investment opportunity tracking Nifty Next 50 index with both regular and direct plan options for different investor preferences.
Impact Justification
Routine NFO launch announcement for mutual fund members trading on BSE StAR MF platform with standard operational guidelines