Description

DSP Mutual Fund to launch DSP NIFTY NEXT 50 ETF NFO from December 19, 2025 to December 30, 2025 on BSE StAR MF Platform with tentative allotment on January 5, 2026.

Summary

DSP Mutual Fund is launching DSP NIFTY NEXT 50 ETF as a New Fund Offer (NFO) on the BSE StAR MF Platform. The NFO period runs from December 19, 2025 to December 30, 2025, with a tentative allotment date of January 5, 2026. Both regular and direct plan options will be available. The scheme falls under the Equity category and will track the NIFTY NEXT 50 index.

Key Points

  • NFO available for DSP NIFTY NEXT 50 ETF and DSP NIFTY NEXT 50 ETF - DIRECT PLAN
  • Both schemes categorized as Equity schemes
  • Transactions without client-initiated funds by 9:00 AM on T+1 will be cancelled
  • Pending transactions will remain in system until 3:00 PM on last NFO day or T+5, whichever is earlier
  • Clear funds must be available in ICCL Account by 6:00 PM on January 2, 2026
  • Cheques and OTM payments acceptable during NFO period subject to fund clearance deadline
  • NFO extended till midnight on December 30, 2025 for lumpsum purchases only

Regulatory Changes

No regulatory changes announced in this circular.

Compliance Requirements

For Trading Members:

  • Ensure client funds are initiated by 9:00 AM on T+1 day to avoid transaction cancellation
  • Report cancelled transactions (CC with N flag) to RTA/AMC for uninitiated payments
  • Ensure clear funds availability in ICCL Account by 6:00 PM on January 2, 2026 for allotment
  • Process cheques and OTM payments with sufficient time for fund clearance by deadline

For Investors:

  • Initiate payment for NFO transactions to avoid automatic cancellation
  • Ensure funds clear by January 2, 2026, 6:00 PM for unit allotment
  • Lumpsum purchases available during extended period till midnight December 30, 2025

Important Dates

  • December 19, 2025: NFO opening date
  • December 30, 2025: NFO closing date (extended till midnight for lumpsum purchases)
  • T+1 Day, 9:00 AM: Deadline for clients to initiate funds (else transaction cancelled)
  • January 2, 2026, 6:00 PM: Deadline for clear funds in ICCL Account
  • January 5, 2026: Tentative allotment date

Impact Assessment

Market Impact: Minimal. This is a routine NFO launch for a passive index ETF tracking NIFTY NEXT 50. It expands investment options for market participants interested in mid-cap exposure beyond the top 50 companies.

Investor Impact: Low to medium for interested investors. Provides new investment avenue for those seeking exposure to the next tier of large-cap companies in the Indian equity market through a passive ETF structure. Both regular and direct plans offer flexibility in cost structure.

Operational Impact: Standard NFO processing requirements for BSE StAR MF platform members. Members must ensure compliance with fund initiation and clearance timelines to facilitate smooth allotment process.

Impact Justification

Informational circular about a new ETF NFO launch. Relevant only to investors interested in DSP Mutual Fund's new offering. No market-wide impact or regulatory changes.