Description

BSE enables the SMART Switch feature for AXIS NIFTY INDIA DEFENCE INDEX FUND NFO on BSE StAR MF platform from April 10 to April 22, 2026, allowing lump sum switch transactions in non-Demat mode up to 2:30 PM on the closing date.

Summary

BSE has announced the enabling of the SMART Switch feature for AXIS NIFTY INDIA DEFENCE INDEX FUND NFO on the BSE StAR MF platform. The feature is available from April 10, 2026 to April 22, 2026, and allows investors to switch existing units from eligible AXIS Mutual Fund schemes into the NFO. Transactions are accepted only as lump sum subscriptions in non-Demat mode, up to 2:30 PM on April 22, 2026.

Key Points

  • SMART Switch feature enabled from April 10, 2026 to April 22, 2026 for AXIS NIFTY INDIA DEFENCE INDEX FUND NFO
  • Available via Manual Entry, Web-based Interface, APIs, and Bulk Upload
  • Feature restricted to AXIS Mutual Fund schemes, plans, and options listed in Annexure I
  • Regular Plan – Growth Option investors in AXIS OVERNIGHT FUND will be switched only into the Growth Option of the NFO; same logic applies for Direct Plan – Growth Option
  • All purchase transactions under NFO SMART Switch schemes processed as normal purchase transactions and reported to RTA on the transaction day (subject to fund confirmation)
  • Only lump sum subscriptions permitted; non-Demat mode only
  • Switch-out processed on FIFO basis; for investors with existing units, only newly purchased units under the NFO SMART Switch plan are considered for switch out
  • All successfully allotted purchase orders by 2:30 PM on April 22, 2026 automatically treated as ‘Switch In’ to the NFO
  • Switch transactions reported to RTA on April 24, 2026
  • Members can identify SMART Switch orders via the Remarks column in the Provisional Order Report and Order Status Report

Regulatory Changes

No new regulations introduced. This circular operationalizes an existing SMART Switch mechanism for a specific NFO window under AXIS Mutual Fund, with detailed processing logic provided via annexures (Annexure I–IV).

Compliance Requirements

  • Members must use scheme credentials strictly per Annexure IV for API-based platforms and Bulk Upload options
  • Members must ensure transactions are submitted only in non-Demat mode for lump sum subscriptions
  • Members should refer to Annexure I for accurate scheme identification
  • Switch-out processing must follow FIFO logic as described; only newly purchased units (not pre-existing holdings) are eligible for switch out under the NFO SMART Switch plan
  • All qualifying purchase orders must be reported to RTA on the transaction day; switch transactions reported by April 24, 2026

Important Dates

  • April 10, 2026: SMART Switch feature enabled on BSE StAR MF platform
  • April 22, 2026, 2:30 PM: Deadline for accepting transactions under SMART Switch feature
  • April 24, 2026: Switch transactions reported to RTA

Impact Assessment

This circular has a moderate operational impact for BSE StAR MF members (mutual fund distributors, platforms, and API users) who service clients invested in eligible AXIS Mutual Fund schemes. The SMART Switch mechanism simplifies the process of redirecting existing investments into the new AXIS NIFTY INDIA DEFENCE INDEX FUND NFO. The FIFO-based switch-out logic and restriction to non-Demat lump sum mode may require members to update their systems and client communication. The defence-sector thematic index fund may attract interest given current market focus on defence stocks, but the circular itself is operational in nature with limited systemic market impact.

Impact Justification

Operational circular for BSE StAR MF members enabling a time-limited NFO SMART Switch feature; affects mutual fund distributors and investors transacting in AXIS Mutual Fund schemes but has limited broader market impact.