Description

NSE Clearing updates the Mutual Fund Service System settlement schedule for February 2026, revising settlement dates for subscription, liquid subscription, and redemption orders.

Summary

NSE Clearing Limited has issued a revised settlement calendar for the Mutual Fund Service System (MFSS) for February 2026, superseding the earlier circular dated January 05, 2026. The circular provides updated settlement schedules for three types of transactions: regular subscription orders (Settlement Type ‘S’), liquid subscription orders (Settlement Type ‘K’), and redemption orders (Settlement Type ‘U’).

Key Points

  • Revised settlement schedule replaces the earlier calendar issued on January 05, 2026 (circular ref NCL/MFSS/72152)
  • Settlement schedules provided for three transaction types: Subscription (T+1), Liquid Subscription (T day), and Redemption
  • MFSS Subscription settlements numbered S20260201 through S20260240 covering February 2-27, 2026
  • Liquid Subscription settlements numbered K20260201 through K20260240 covering the same period
  • No Liquid Settlement on February 19, 2026 due to Chhatrapati Shivaji Maharaj Jayanti
  • Redemption settlements numbered U20260201 through U20260912 with transfer of units on transaction date
  • Category codes for scheme categories with fund settlement days provided in Annexure ‘D’

Regulatory Changes

No regulatory changes introduced. This is an operational update revising the settlement calendar previously issued.

Compliance Requirements

  • All MFSS participants must follow the revised settlement schedule for February 2026
  • Participants must check the category of scheme in the scheme master to determine applicable settlement day
  • Funds settlement for subscription orders occurs on T Day (transaction date) depending on the fund’s settlement day for the scheme category
  • Redemption order funds settlement follows scheme category payout guidelines (T+1 through T+8 depending on scheme category)

Important Dates

  • Circular Date: January 13, 2026
  • Effective Period: February 2026
  • First Settlement Date: February 2, 2026 (S20260201, K20260201, U20260201)
  • Last Settlement Date in Schedule: February 27, 2026 extending to March 2, 2026 for some subscription settlements
  • Holiday: February 19, 2026 - No Liquid Settlement (Chhatrapati Shivaji Maharaj Jayanti)

Impact Assessment

Operational Impact: Medium - All MFSS participants must update their settlement schedules and operational calendars to align with the revised dates. The revision affects planning for fund flows, unit payouts, and participant obligations.

Market Impact: Low - This is a routine operational calendar update that ensures smooth functioning of mutual fund settlements. The revision does not change settlement mechanisms or introduce new requirements.

Participant Impact: Participants need to note the holiday on February 19, 2026 for liquid settlements and adjust their operations accordingly. The T+1 settlement cycle for regular subscriptions and T-day settlement for liquid subscriptions remain unchanged in structure.

Impact Justification

Operational calendar revision affecting mutual fund participants' settlement scheduling. Medium impact due to operational planning requirements but low severity as it's a routine calendar update.