Description

ABSLAMC announces merger of Interval Income Fund - Quarterly Plan - Series I into CRISIL-IBX Financial Services 3 to 6 Months Debt Index Fund, effective November 25, 2025, with exit load waiver during transition period.

Summary

National Stock Exchange notifies members about the merger of Aditya Birla Sun Life Interval Income Fund - Quarterly Plan - Series I (merging scheme) into Aditya Birla Sun Life CRISIL-IBX Financial Services 3 to 6 Months Debt Index Fund (surviving scheme). The merger will be effective after closure of business hours on November 25, 2025. Investors opposed to the merger can redeem or switch investments without exit load charges during the specified period. Existing systematic plans (SIP/XSIP/SWP/STP) will be automatically transferred to the surviving scheme.

Key Points

  • Merging Scheme: Aditya Birla Sun Life Interval Income Fund - Quarterly Plan - Series I (interval income scheme with relatively low interest rate risk and moderate credit risk)
  • Surviving Scheme: Aditya Birla Sun Life CRISIL-IBX Financial Services 3 to 6 Months Debt Index Fund (open-ended constant maturity index fund with relatively low interest rate risk and relatively low credit risk)
  • Merger approved by Board of Directors of ABSLAMC and ABSLTPL (Trustees)
  • Effective Date: November 25, 2025 (after close of business hours)
  • Exit load waiver period: October 27, 2025 to November 25, 2025 (both days inclusive)
  • Investors can redeem or switch to other ABSL schemes without exit load during waiver period
  • Subscription transactions in merging scheme available till 5 business days prior to effective date
  • Existing SIP/XSIP/SWP will continue processing in merging scheme during exit load waiver period
  • All systematic plans (SIP/XSIP/STP/SWP) will automatically shift to surviving scheme after November 25, 2025

Regulatory Changes

No new regulatory changes introduced. This circular implements existing SEBI regulations governing mutual fund scheme mergers, including investor protection provisions requiring exit options without penalties during merger transition periods.

Compliance Requirements

  • For NSE Members: Take note of the merger and inform clients trading on NSE MF Invest platform
  • For Investors: Those not in favor of merger must redeem or switch investments during October 27 - November 25, 2025 to avoid automatic merger
  • For ABSLAMC: Issue notice cum addendum to unitholders, provide exit load waiver facility, cease subscription 5 business days before effective date
  • Platform Operations: NSE MF Invest platform to facilitate redemptions, switches, and continuation of systematic plans during transition

Important Dates

  • October 24, 2025: Circular issued to NSE members
  • October 27, 2025: Start of exit load waiver period for redemptions/switches
  • November 20, 2025 (approximately): Last date for subscription in merging scheme (5 business days before effective date)
  • November 25, 2025: Effective date of merger (after close of business hours); end of exit load waiver period; automatic transfer of systematic plans to surviving scheme

Impact Assessment

Investor Impact: Investors in the merging scheme will see their holdings automatically transferred to a different product profile - from an interval income fund (with quarterly liquidity windows) to an open-ended index fund. The surviving scheme has relatively lower credit risk compared to the merging scheme. Investors have adequate 30-day window to exit without penalties if the new scheme characteristics don’t align with their investment objectives.

Operational Impact: Limited to NSE MF Invest platform operations. Systematic investment/withdrawal plans will continue seamlessly with automatic migration. Platform must handle potential surge in redemption/switch requests during the 30-day exit window.

Market Impact: Minimal broader market impact as this affects specific schemes of one AMC. May result in asset reallocation within Aditya Birla Sun Life Mutual Fund schemes but unlikely to affect overall mutual fund industry or equity/debt markets significantly.

Impact Justification

Affects specific mutual fund scheme investors with transition provisions and exit options, but limited to one AMC and specific schemes