Description

NSE Clearing Limited issues a consolidated circular for the Mutual Fund Service System covering circulars from April 1, 2025 to March 31, 2026, including settlement schedules, UPI payment changes, and clearing procedures.

Summary

NSE Clearing Limited (NCL) has issued Circular Ref. No. 152/2026 (Download Ref No: NCL/MFSS/74000) on April 30, 2026, consolidating all Mutual Fund Service System (MFSS) circulars issued from April 1, 2025 to March 31, 2026. The circular is structured in three parts: Part A (summary of important circulars), Part B (detailed consolidated circular covering settlement schedules, clearing and settlement procedures, mode of payments, and limitation of liability), and Part C (list of payment aggregators).

Key Points

  • Consolidated circular covering MFSS circulars from April 1, 2025 to March 31, 2026
  • Settlement schedule for HLIQUID (liquid fund) subscriptions: market timings 9:00 AM to 1:00 PM, funds cut-off at 1:00 PM on T day, units settled on T day
  • Normal subscription settlement: market timings 9:00 AM to 2:30 PM, funds cut-off at 2:30 PM on T day, units on T+1 day
  • NFO (Normal/New Fund Offer) subscriptions: market timings 9:00 AM to 3:00 PM, funds cut-off at 2:30 PM on T day
  • Normal redemptions: market timings 9:00 AM to 3:00 PM, cut-off at 4:30 PM on T day, units payout T+1 to T+8 day per AMC scheme master
  • Overnight scheme redemptions: market timings 9:00 AM to 7:00 PM, cut-off at 7:15 PM on T day, units on T+1 day
  • UPI payment standardisation and handle change incorporated from earlier circulars
  • Contact for clarifications: mfss_clearing@nsccl.co.in

Regulatory Changes

  • Revised Settlement Schedule for Overnight Mutual Fund Schemes (NCL/MFSS/68163, May 23, 2025): Updated settlement timelines specifically for overnight schemes
  • Standardised UPI IDs for Payment Collection (NCL/MFSS/68641, June 19, 2025): Adoption of standardised, validated, and exclusive UPI IDs for payment collection by SEBI-registered intermediaries from investors
  • Change in UPI Handle (NCL/MFSS/70469, September 26, 2025): Updated UPI handle for MFSS transactions
  • Settlement of MF Transactions on NSE MF Invest Platform (NCL/MFSS/70797, October 14, 2025 and NCL/MFSS/71454, November 25, 2025): Two updates to settlement procedures on the NSE MF Invest Platform

Compliance Requirements

  • All MFSS participants must adhere to the settlement schedules specified in Part B of this consolidated circular
  • Participants must use standardised and exclusive UPI IDs as prescribed by SEBI for payment collection from investors
  • Redemption payouts must be made in accordance with the scheme master of respective AMCs within the T+1 to T+8 day window
  • Participants should refer to Part C for the updated list of approved payment aggregators
  • Any changes to timelines will be communicated by the Clearing Corporation via separate circulars

Important Dates

  • April 30, 2026: Date of issuance of this consolidated circular
  • Coverage period: April 1, 2025 to March 31, 2026 (circulars consolidated herein)
  • NCL/MFSS/68163 – May 23, 2025: Revised overnight fund settlement schedule
  • NCL/MFSS/68641 – June 19, 2025: UPI standardisation circular
  • NCL/MFSS/70469 – September 26, 2025: UPI handle change
  • NCL/MFSS/70797 – October 14, 2025: NSE MF Invest Platform settlement update
  • NCL/MFSS/71454 – November 25, 2025: NSE MF Invest Platform settlement update

Impact Assessment

This consolidated circular serves as a comprehensive reference document for all MFSS participants including mutual fund distributors, brokers, and clearing members operating on the NSE MF Invest Platform. The operational impact is moderate — participants must ensure compliance with the specified settlement schedules across all mutual fund categories (liquid, normal, NFO, and overnight schemes). The UPI standardisation requirements affect payment collection processes for SEBI-registered intermediaries. No new extraordinary changes are introduced by this consolidation itself; however, participants who may have missed any of the five key circulars from FY2025-26 should review them via this document. Redemption timelines vary significantly by AMC scheme master (T+1 to T+8), requiring participants to monitor individual fund house guidelines.

Impact Justification

Periodic consolidated reference circular for mutual fund participants on the NSE platform; impacts operational and settlement procedures for all MFSS participants but does not introduce sudden regulatory changes.