Description
BSE notifies members of Bandhan Mutual Fund's merger of BANDHAN CRISIL IBX Gilt April 2026 Index Fund (Transferor) into BANDHAN Short Duration Fund (Transferee), effective April 30, 2026. Investors may redeem or switch without exit load through April 30, 2026.
Summary
BSE has informed members that Bandhan Mutual Fund will merge the BANDHAN CRISIL IBX Gilt April 2026 Index Fund (Transferor Scheme) into the BANDHAN Short Duration Fund (Transferee Scheme). The merger becomes effective after close of business hours on April 30, 2026. Investors who object to the merger may exit without paying an exit load during a specified window.
Key Points
- Transferor Scheme: BANDHAN CRISIL IBX Gilt April 2026 Index Fund
- Transferee Scheme: BANDHAN Short Duration Fund
- Effective date of merger: April 30, 2026 (after close of business hours)
- Exit load-free redemption or switch-out window: April 1, 2026 to April 30, 2026 (both days inclusive) via BSE StAR MF Platform
- Fresh subscriptions, lump sum, additional investments, Switch-in, STP-in, and SIP/XSIP registrations continue to be accepted in the Transferor Scheme during the exit load period
- Demat mode: last date for transaction acceptance is April 24, 2026
- Non-Demat mode: last date for transaction acceptance is April 30, 2026
- SIP/STP/SWP registrations shift automatically to the Transferee Scheme for investors giving positive consent to AMC/RTA; no fresh registration required
- Investors not wishing to continue systematic facilities in the Transferee Scheme must apply for cancellation
- Transferor Scheme ceases all transactions on BSE StAR MF platform after close of business on April 30, 2026
Regulatory Changes
This merger is governed by SEBI mutual fund regulations on scheme mergers. Bandhan AMC has issued a Notice-cum-Addendum with clarifications. The scheme merger consolidates a maturity-based gilt index fund into an actively managed short duration debt fund, changing the investment mandate for continuing investors.
Compliance Requirements
- BSE Members: Must inform clients invested in the Transferor Scheme about the merger, exit window, and transaction deadlines on BSE StAR MF.
- Investors opposing the merger: Must redeem or switch out by April 30, 2026 (Demat investors by April 24, 2026) to avoid being moved into the Transferee Scheme.
- Investors with systematic plans (SIP/STP/SWP): Must provide positive consent to AMC/RTA to continue in the Transferee Scheme, or apply for cancellation if they do not wish to continue.
- Members should refer to the attached Annexure and Notice-cum-Addendum for plan/option mapping details between the Transferor and Transferee Schemes.
Important Dates
| Date | Event |
|---|---|
| April 1, 2026 | Start of exit load-free redemption/switch window |
| April 24, 2026 | Last date for Demat mode transactions on BSE StAR MF |
| April 30, 2026 | Last date for Non-Demat mode transactions; end of exit window; merger effective date |
| April 30, 2026 (post-market) | Transferor Scheme ceases all transactions; SIP/STP/SWP shifts to Transferee Scheme |
Impact Assessment
The merger primarily impacts retail and institutional investors currently holding units in the BANDHAN CRISIL IBX Gilt April 2026 Index Fund. As the fund was tracking a gilt index with an April 2026 maturity, this merger represents a natural winding-down event. Investors will be moved into the BANDHAN Short Duration Fund, which has a different risk-return profile (active short duration vs. passive gilt index). The 30-day exit window without load provides adequate time for investors to exit if they disagree. Operationally, BSE members using the StAR MF platform must observe the split deadlines for Demat (April 24) and Non-Demat (April 30) transactions. Broader market impact is minimal.
Impact Justification
Affects existing investors in Bandhan CRISIL IBX Gilt April 2026 Index Fund with a defined exit window and operational changes on BSE StAR MF platform; limited to mutual fund participants rather than broad market participants.