Description
NSE informs members about the merger of UTI Nifty SDL Plus AAA PSU Bond Apr 2026 75:25 Index Fund (merging scheme) into UTI Floater Fund (surviving scheme), effective after business hours on April 30, 2026, with an exit load-free redemption window from April 1–30, 2026.
Summary
NSE has informed all members about the merger of UTI Nifty SDL Plus AAA PSU Bond Apr 2026 75:25 Index Fund (Merging Scheme) into UTI Floater Fund (Surviving Scheme) on the NSE MF Invest Platform. The merger is effective after business hours on April 30, 2026. Investors who do not wish to participate in the merger may redeem or switch to other UTI Mutual Fund schemes without any exit load during the designated exit period.
Key Points
- The merging scheme is UTI Nifty SDL Plus AAA PSU Bond Apr 2026 75:25 Index Fund; the surviving scheme is UTI Floater Fund.
- Merger is effective after business hours on April 30, 2026.
- Investors can redeem or switch without exit load from April 1, 2026 to April 30, 2026 (both days inclusive) via NSE MF Invest platform.
- Existing SIP/XSIP/SWP registrations will continue to be processed in the merging scheme during the exit load-free period (April 1–30, 2026).
- All SIP/XSIP/STP/SWP registrations will be shifted to the surviving scheme after business hours on April 27, 2026.
- A separate merger of UTI Fixed Term Income Fund - Series XXXV – I (1260 Days) into UTI Corporate Bond Fund is also underway, effective April 27, 2026, with exit period March 27–April 27, 2026.
- The merger is pursuant to SEBI Master Circular dated June 27, 2024, provision 2.2.1, constituting a change in fundamental attributes under Regulation 18(15A) read with Regulation 25(26) of the SEBI (Mutual Funds) Regulations, 1996.
Regulatory Changes
The merger constitutes a change in fundamental attributes of the merging schemes as per SEBI (Mutual Funds) Regulations, 1996 (Regulation 18(15A) read with Regulation 25(26)), and is aligned with SEBI Master Circular dated June 27, 2024 (provision 2.2.1). No new regulatory framework is introduced; this is an application of existing merger regulations.
Compliance Requirements
- NSE members must take note of the merger and communicate relevant details to investors transacting through NSE MF Invest Platform.
- Members must ensure that redemption and switch requests from dissenting investors are processed without exit load within the exit period (April 1–30, 2026).
- SIP/XSIP/STP/SWP registrations must be migrated to the surviving scheme after business hours on April 27, 2026.
- Members should refer to Annexure I (attached to the circular) for the full list of scheme plans/options being merged.
Important Dates
| Event | Date |
|---|---|
| Exit load-free period opens (UTI Nifty SDL Plus AAA PSU Bond) | April 1, 2026 |
| Exit load-free period closes (UTI Nifty SDL Plus AAA PSU Bond) | April 30, 2026 (by 3:00 PM) |
| SIP/XSIP/STP/SWP shifted to surviving scheme | After business hours, April 27, 2026 |
| Merger effective date (UTI Nifty SDL Plus AAA PSU Bond → UTI Floater Fund) | After business hours, April 30, 2026 |
| Exit load-free period opens (UTI Fixed Term Income Fund Series XXXV–I) | March 27, 2026 |
| Exit load-free period closes (UTI Fixed Term Income Fund Series XXXV–I) | April 27, 2026 (by 3:00 PM) |
| Merger effective date (UTI Fixed Term Income Fund → UTI Corporate Bond Fund) | April 27, 2026 |
Impact Assessment
This circular has a medium impact, primarily affecting investors holding units in UTI Nifty SDL Plus AAA PSU Bond Apr 2026 75:25 Index Fund and UTI Fixed Term Income Fund - Series XXXV – I (1260 Days) through the NSE MF Invest Platform. Investors who disagree with the merger have a clearly defined exit window without incurring exit load. SIP/SWP/XSIP/STP holders will see their registrations automatically migrated to the surviving schemes. There is no broader market disruption; the impact is operational and limited to the specific scheme investors and NSE MF Invest platform members.
Impact Justification
Affects existing investors in specific UTI Mutual Fund schemes with a defined exit window; operational impact is limited to those scheme holders and NSE MF Invest platform members processing transactions.