Description

BSE enables SMART Switch feature for SBI QUALITY FUND NFO, allowing investors to switch from SBI Overnight Fund during the NFO period from January 28 to February 09, 2026.

Summary

BSE has announced the activation of the SMART Switch feature for SBI QUALITY FUND during its New Fund Offer (NFO) period on the BSE StAR MF platform. This feature will be available from January 28, 2026, to February 09, 2026, and allows investors to switch units from SBI Overnight Fund into the new SBI Quality Fund during the NFO period.

Key Points

  • SMART Switch feature enabled for SBI QUALITY FUND NFO from January 28, 2026, to February 09, 2026
  • Feature available only for SBI Overnight Fund (Regular Growth and Direct Growth plans)
  • Available through manual entry, web interface, APIs, and bulk upload options
  • Switch transactions limited to lumpsum subscriptions in Non-Demat mode only
  • Transaction cutoff time is 2:30 PM on February 09, 2026
  • Purchase orders automatically considered for ‘Switch-In’ to SBI QUALITY FUND
  • All switch transactions will be reported to RTA on February 09, 2026

Regulatory Changes

No regulatory changes. This is an operational feature activation for mutual fund transactions.

Compliance Requirements

  • Members must use proper scheme credentials for direct APIs, API-based platforms, or bulk upload options
  • Plan-to-plan mapping must be maintained: Regular Growth to Regular Growth, Direct Growth to Direct Growth
  • New schemes added to scheme master:
    • SBI QUALITY FUND - NFO SMART SWITCH - SBI OVERNIGHT FUND - REGULAR GROWTH
    • SBI QUALITY FUND - NFO SMART SWITCH - SBI OVERNIGHT FUND - DIRECT GROWTH
  • Purchase transactions processed as normal purchases and reported to RTA on transaction day subject to fund confirmation

Important Dates

  • January 28, 2026: SMART Switch feature activation begins
  • February 09, 2026: Last day for SMART Switch transactions (cutoff 2:30 PM)
  • February 09, 2026: All switch transactions reported to RTA

Impact Assessment

This is a platform operational enhancement specific to SBI Mutual Fund’s NFO with minimal market impact. It provides convenience for existing SBI Overnight Fund investors to participate in the SBI Quality Fund NFO through an automated switch mechanism. The feature is limited in scope and duration, affecting only subscribers of specific SBI mutual fund schemes. Members can identify Smart Switch orders through the Remarks column in provisional order and order status reports at the BSE StAR MF platform.

Switch Processing Logic

  • For investors with existing units who make additional purchases under NFO Smart Switch: switch-out processes only for newly purchased units using FIFO logic
  • For fresh purchases under NFO Smart Switch: all purchase units considered for switch-out regardless of gain/loss on switch-out date
  • Units switched maintain plan consistency (Regular/Direct and Growth option)

Impact Justification

Operational notice for mutual fund platform feature enabling SMART Switch during NFO period. Limited to specific SBI mutual fund schemes with no broader market impact.