Description

NSE informs members about the merger of UTI Fixed Term Income Fund - Series XXXV - I (1260 days) into UTI Corporate Bond Fund, effective after business hours on April 27, 2026, with an exit load-free redemption window from March 27 to April 27, 2026.

Summary

NSE has informed all members about the upcoming merger of UTI Fixed Term Income Fund - Series XXXV - I (1260 days) (Merging Scheme) into UTI Corporate Bond Fund (Surviving Scheme) on the NSE MF Invest Platform. The merger is effective after business hours on April 27, 2026. Investors who do not wish to participate in the merger may redeem or switch to other UTI Mutual Fund schemes without exit load during the prescribed exit period.

Key Points

  • UTI Fixed Term Income Fund - Series XXXV - I (1260 days) will be merged into UTI Corporate Bond Fund effective after business hours on April 27, 2026.
  • Investors opposing the merger can redeem or switch to other UTI Mutual Fund schemes without exit load between March 27, 2026 and April 27, 2026 (both days inclusive) via the NSE MF Invest platform.
  • Existing SIP/XSIP/SWP registrations in the merging scheme will continue to be processed during the exit load-free period (March 27 to April 27, 2026).
  • After business hours on April 27, 2026, the merging scheme will cease to exist, and all SIP/XSIP/STP/SWP registrations will be automatically shifted to the surviving scheme (UTI Corporate Bond Fund).
  • A second merger is also noted in the addendum: UTI Nifty SDL Plus AAA PSU Bond Apr 2026 75:25 Index Fund will merge into UTI Floater Fund, effective April 30, 2026, with an exit period from April 1 to April 30, 2026.

Regulatory Changes

The merger is being carried out pursuant to SEBI Master Circular dated June 27, 2024 (provision 2.2.1), which treats the merger as a change in fundamental attributes under Regulation 18(15A) read with Regulation 25(26) of the SEBI (Mutual Funds) Regulations, 1996. The proposed merger constitutes a change in fundamental attributes of the merging schemes.

Compliance Requirements

  • NSE members must note and communicate the merger details to relevant investors on the NSE MF Invest platform.
  • Investors in the merging scheme who wish to exit must do so by 3:00 PM on April 27, 2026 (or the immediately following business day if it is not a business day).
  • No action is required for investors who consent to the merger; their holdings and systematic plans will automatically transition to the surviving scheme.

Important Dates

  • March 27, 2026: Exit load-free redemption/switch window opens for UTI Fixed Term Income Fund - Series XXXV - I merger.
  • April 1, 2026: Exit load-free window opens for UTI Nifty SDL Plus AAA PSU Bond Apr 2026 75:25 Index Fund merger.
  • April 27, 2026 (by 3:00 PM): Last date for exit load-free redemption/switch for UTI Fixed Term Income Fund - Series XXXV - I investors.
  • April 27, 2026 (after business hours): Effective date of merger of UTI Fixed Term Income Fund - Series XXXV - I into UTI Corporate Bond Fund; merging scheme ceases to exist.
  • April 30, 2026 (after business hours): Effective date of merger of UTI Nifty SDL Plus AAA PSU Bond Apr 2026 75:25 Index Fund into UTI Floater Fund.

Impact Assessment

This circular has a moderate impact on investors currently holding units in UTI Fixed Term Income Fund - Series XXXV - I (1260 days) and those with active SIP/XSIP/STP/SWP registrations in the scheme. Post-merger, these investors will be transitioned to UTI Corporate Bond Fund, which has a different risk-return profile (open-ended vs. fixed-term). NSE MF Invest platform members and distributors need to proactively inform clients of the exit window to ensure informed decision-making. The operational shift of systematic plans to the surviving scheme requires no manual intervention but may affect investors’ portfolio strategy.

Impact Justification

Affects investors in specific UTI Mutual Fund schemes with a defined exit window; operational impact limited to NSE MF Invest platform participants and existing SIP/SWP holders in the merging scheme.