Description

Circular clarifying payment modes, timelines, and processes for mutual fund transactions on NSE MF Invest Platform with detailed guidelines on fund transfer to Clearing Corporation account.

Summary

NSE Clearing Limited (NCL) has issued a circular dated October 14, 2025 (Ref: 0327/2025) to clarify the settlement process for mutual fund transactions on NSE MF Invest Platform. The circular addresses frequently asked questions regarding payment modes, timelines for fund transfer, refund processes, and redemption procedures. All mutual fund orders must be settled through NSE Clearing Corporation account using approved payment modes from registered client accounts with ‘Active’ status.

Key Points

  • Fund transfers must be made only from client accounts registered on NSE MF Invest platform with ‘Active’ status
  • Bank account, IFSC, and Account Type must be updated on NSE MF Invest Portal’s Client Master before payment and order placement
  • Cut-off time for Liquid and Overnight funds (L0): 1:00 PM
  • Cut-off time for Other Funds: 2:30 PM
  • Funds must be received by clearing corporation within 5 working days of order placement
  • Direct fund transfer to Clearing Corporation available via RTGS/NEFT
  • Virtual account numbers follow specific format based on member code length (5 or 7 digits)
  • UTR entry must be 22-digit only; wrong/short UTR may result in refund to source account
  • Internet banking facility must be used for NEFT/RTGS from registered client account only

Regulatory Changes

No new regulatory changes introduced. This circular provides clarification and consolidates information on existing processes, referencing:

  • Consolidated circular dated April 30, 2025
  • Operating guidelines dated March 24, 2022

Compliance Requirements

For All Participants:

  • Transfer funds only to Clearing Corporation account for all mutual fund orders placed through stock exchange
  • Ensure client bank account details (account number, IFSC, Account Type) are updated on NSE MF Invest Portal’s Client Master before payment and order placement
  • Ensure funds are received by clearing corporation before cut-off times
  • Complete fund transfer within 5 working days of order placement

For Fund Transfers via RTGS/NEFT:

  • Use only internet banking facility from registered client account with ‘Active’ status
  • Transfer to NCL virtual account with correct format:
    • For 5-digit member code: NSEMF4 + member code (5 digits) + client code (up to 10 digits)
    • For 7-digit member code: NSEMF6 + member code (7 digits) + client code (up to 10 digits)
  • Beneficiary Name: NSE Invest Platform NCL Settlement Account
  • Bank: HDFC Bank, IFSC: HDFC0000060
  • LEI Number: 2138003214435KV3SI18
  • Enter 22-digit UTR only when required

For Clarifications:

Important Dates

  • Effective Date: October 14, 2025
  • Daily Cut-off Times:
    • Liquid and overnight funds (L0): 1:00 PM
    • Other Funds: 2:30 PM
  • Fund Receipt Window: Within 5 working days of order placement

Impact Assessment

Operational Impact: This circular has medium operational impact on participants and investors using NSE MF Invest Platform. It provides necessary clarity on payment processes, reducing potential errors in fund transfers and order processing. The requirement for 22-digit UTR and specific virtual account formats helps in proper reconciliation of funds.

Market Impact: Limited direct market impact as this is primarily an operational/procedural circular. However, improved clarity on settlement processes should enhance efficiency of mutual fund transactions on the platform and reduce failed transactions due to incorrect payment details.

Investor Impact: Positive impact for retail investors as the circular provides clear guidelines on payment modes, timelines, and processes. The emphasis on using only registered accounts with ‘Active’ status and correct UTR format should reduce instances of unreconciled funds and subsequent refunds, leading to smoother transaction experience.

Impact Justification

Operational circular providing clarification on existing payment processes for mutual fund transactions. Medium importance as it affects participants and investors using NSE MF Invest Platform but does not introduce major regulatory changes.