Description

Clarifications on payment modes, timelines, and procedures for mutual fund transactions on NSE MF Invest Platform including FAQs on fund transfer, refunds, and redemption process.

Summary

NSE Clearing Limited has issued clarifications and FAQs regarding the settlement of mutual fund transactions on the NSE MF Invest Platform. The circular addresses payment modes, timelines, dos and don’ts for fund transfers, and processes for refunds and redemptions. All fund transfers must be made from registered client accounts with “Active” status to the Clearing Corporation account using specified virtual account numbers.

Key Points

  • Fund transfers must be done 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 making payment and placing orders
  • Cut-off times for funds: Liquid and overnight funds (L0) - 1:00 PM; Other Funds - 2:30 PM
  • Funds must be received by clearing corporation within 5 working days of order placement
  • Direct fund transfer to NCL via RTGS/NEFT requires using virtual account numbers with specific formats
  • Virtual accounts for 5-digit member codes: NSEMF4 + member code (5 digits) + client code (up to 10 digits)
  • Virtual accounts for 7-digit member codes: NSEMF6 + member code (7 digits) + client code (up to 10 digits)
  • Beneficiary Name: NSE Invest Platform NCL Settlement Account (HDFC Bank, IFSC: HDFC0000060)
  • UTR requirements: 22-digit for RTGS, 16-digit for NEFT, 12-digit for IMPS
  • Wrong or short UTR may result in unreconciled funds being refunded to source account
  • Fund transfers should be done using internet banking facility only from registered client accounts

Regulatory Changes

No new regulatory changes introduced. This circular provides clarifications and consolidates information related to existing circulars dated April 30, 2025, March 24, 2022, and October 14, 2025.

Compliance Requirements

  • Participants must ensure client bank account details are updated on NSE MF Invest Portal’s Client Master before payment and order placement
  • Fund transfers must be made only from registered and active client accounts
  • Correct UTR numbers must be entered based on payment mode (22-digit RTGS, 16-digit NEFT, 12-digit IMPS)
  • Funds must be transferred within 5 working days of order placement
  • Online fund transfers must use internet banking facility from registered client accounts
  • Participants should contact relationship managers or support@nseinvest.com for clarifications

Important Dates

  • Effective Date: November 25, 2025
  • Daily Cut-off Times:
    • Liquid and overnight funds (L0): 1:00 PM
    • Other Funds: 2:30 PM
  • Fund Receipt Timeline: Within 5 working days of order placement

Impact Assessment

Market Impact: Medium - affects all participants and clients using NSE MF Invest Platform for mutual fund transactions

Operational Impact: Medium - participants need to ensure compliance with payment procedures, virtual account formats, and timelines. Incorrect UTR entries or non-compliance may result in order processing delays and fund refunds

Client Impact: Clients must ensure their bank accounts are properly registered and active on the platform, and use correct payment methods and UTR formats to avoid transaction failures and refunds

Impact Justification

Operational guidance circular providing clarifications on existing payment procedures for mutual fund transactions. Medium impact as it affects participants and clients using NSE MF Invest Platform but does not introduce new regulatory requirements.