Description

NSE Clearing Limited revises the MFSS settlement calendar for January 2026 due to trading and settlement holiday on January 15, 2026 for Municipal Corporation Elections in Maharashtra.

Summary

NSE Clearing Limited has issued a revised settlement calendar for the Mutual Fund Service System (MFSS) for January 2026. The revision is necessitated by a trading and settlement holiday on January 15, 2026, on account of Municipal Corporation Elections in Maharashtra. This circular supersedes the earlier settlement calendar issued on December 23, 2025 (circular ref NCL/MFSS/71978).

Key Points

  • Revised settlement schedules cover three settlement types: Subscription (Type ‘S’), Liquid Subscription (Type ‘K’), and Redemption (Type ‘U’)
  • Trading and settlement holiday on January 15, 2026 due to Municipal Corporation Elections in Maharashtra
  • Settlement numbers range from 2026001 to 2026020 for January 2026
  • MFSS Subscription follows T+1 settlement cycle (funds on T, units on T+1)
  • MFSS Liquid Subscription follows T-day units settlement (both funds and units on same day)
  • MFSS Redemption has transfer of units on the redemption order date itself

Regulatory Changes

No new regulatory changes introduced. This is an operational adjustment to existing MFSS settlement procedures to accommodate the declared trading holiday.

Compliance Requirements

  • All MFSS participants must follow the revised settlement calendar provided in Annexures A, B, and C
  • Participants should refer to Annexure ‘D’ for category codes and funds settlement days for subscription and redemption orders
  • Settlement operations must align with the revised schedule showing adjusted dates around the January 15, 2026 holiday

Important Dates

  • Circular Issue Date: January 12, 2026
  • Trading Holiday: January 15, 2026 (Municipal Corporation Elections in Maharashtra)
  • Settlement Period: January 1-30, 2026 (20 settlement cycles)
  • Key Settlement Adjustments: Settlement orders dated January 14, 2026 will have units payout on January 16, 2026 (skipping January 15)

Impact Assessment

Operational Impact: Medium. All mutual fund participants using the MFSS platform need to adjust their operational calendars and ensure systems are updated with the revised settlement dates. The single-day holiday causes a one-day shift in settlement schedules for transactions around January 15.

Market Impact: Low to Medium. The holiday affects the settlement timeline for mutual fund transactions but does not disrupt market operations significantly as it is a planned adjustment. Participants have advance notice to prepare for the revised schedule.

Participant Action Required: MFSS participants must update internal systems, inform clients about revised settlement timelines, and ensure liquidity management accounts for the adjusted settlement dates.

Impact Justification

Operational change affecting MFSS settlement schedules due to trading holiday. Impacts mutual fund participants but follows standard holiday adjustment procedures.