NSE has notified members that Monthly and Weekly frequency options under the Income Distribution cum Capital Withdrawal (IDCW) plan of Kotak Low Duration Fund are now available on the NSE MF Invest Platform with immediate effect from May 11, 2026. This follows an addendum issued by Kotak Mahindra Mutual Fund introducing these frequencies.

Key Points

• Eight new scheme variants of Kotak Low Duration Fund have been activated on the NSE MF Invest Platform covering Regular and Direct plan combinations of Weekly and Monthly IDCW Payout and Reinvestment options.
• The fund is an open-ended low duration debt scheme targeting a Macaulay portfolio duration of 6 to 12 months, carrying relatively high interest rate risk and moderate credit risk.
• New ISINs assigned include INF174KA1A11, INF174KA1ZX1, INF174KA1ZY9, INF174KA1ZZ6, and INF174KA1ZU7 among others.
• Weekly IDCW record date: every Thursday (next business day if Thursday is a non-business day).
• Monthly IDCW record date: 12th of each month (next business day if the 12th is a non-business day).

Regulatory Changes

Kotak Mahindra Trustee Company Limited approved the introduction of Weekly and Monthly IDCW frequencies as an addendum to the Scheme Information Document (SID), Key Information Memorandum (KIM), and Statement of Additional Information (SAI) of the fund. All other existing terms and conditions of the scheme remain unchanged.

Compliance Requirements

• NSE members using the MF Invest Platform should note the new scheme codes and ISINs for processing transactions in the newly introduced variants.
• No specific compliance action is required from members beyond acknowledging the availability of the new options.

Important Dates

• May 6, 2026: Addendum issued by Kotak Mahindra Asset Management Company Limited.
• May 11, 2026: Effective date of new Weekly and Monthly IDCW options on NSE MF Invest Platform.
• Weekly record date: Every Thursday.
• Monthly record date: 12th of each month.

Impact Assessment

This is a low-impact, routine operational update limited to mutual fund distribution on the NSE MF Invest Platform. Investors in Kotak Low Duration Fund gain additional flexibility through weekly and monthly distribution frequencies. There is no impact on equity markets, trading members’ obligations, or broader regulatory compliance requirements.

Kotak Mahindra Asset Management Company Limited (KMAMC) and Kotak Mahindra Trustee Company Limited (KMTC) have approved the merger of Kotak FMP Series 292 (Merging Scheme) into Kotak CRISIL-IBX Financial Services 9 to 12 Months Debt Index Fund (Surviving Scheme). This merger is being carried out under Regulation 25(26) of the SEBI (Mutual Funds) Regulations, 2026 and constitutes a change in the fundamental attributes of the merging scheme. SEBI’s comments were obtained prior to effecting the change, as required under SEBI Master Circular No. SEBI/HO/24/13/11(1)2026-IMD-POD-1/I/7602/2026 dated March 20, 2026.

Key Points

• Merging Scheme: Kotak FMP Series 292 — a close-ended debt scheme with a maturity of 1,735 days; relatively high interest rate risk and relatively low credit risk
• Surviving Scheme: Kotak CRISIL-IBX Financial Services 9 to 12 Months Debt Index Fund — an open-ended Constant Maturity Index Fund tracking the CRISIL-IBX Financial Services 9–12 Months Debt Index; relatively low interest rate risk
• The merger tantamounts to a change in fundamental attributes under SEBI MF Regulations 2026
• Trustees have considered SEBI’s comments prior to effecting the change
• The surviving scheme is an index fund with portfolio rebalancing aligned to the underlying CRISIL-IBX index

Regulatory Changes

• Merger executed under Regulation 25(26) of SEBI (Mutual Funds) Regulations, 2026
• Change in fundamental attributes triggered, requiring mandatory exit option for unitholders of the merging scheme
• Reference circular: SEBI Master Circular No. SEBI/HO/24/13/11(1)2026-IMD-POD-1/I/7602/2026 dated March 20, 2026 (para 1.9.2)

Compliance Requirements

• Investment restrictions of surviving scheme:
  • Total exposure to any single group (excluding PSUs, PFIs, PSBs) shall not exceed 25% of NAV
  • Total exposure to a particular sector (excluding G-sec, T-bills, SDLs, and AAA-rated PSU/PFI/PSB securities) shall not exceed 25% of NAV — though this provision is not applicable as the scheme is based on a sectoral debt index
  • Exposure to instruments with unsupported ratings below investment grade limited; supported-rated instruments above investment grade capped
  • Debt instrument exposure to a particular group shall not exceed 10% of the debt portfolio; group sub-limit is 5%
  • The scheme shall NOT invest in debt instruments issued by Tourism companies, Airlines companies, or Gems and Jewellery companies
  • The scheme shall NOT undertake securities lending, short selling, ADR/GDR, foreign securities, or Credit Default Swaps
• Macaulay Duration: Portfolio duration must replicate the underlying index duration within a maximum permissible deviation of +/- 10%
• Portfolio rebalancing must align with the CRISIL-IBX Financial Services 9–12 Months Debt Index

Important Dates

• Notice Date: May 6, 2026
• Effective merger date: Not explicitly stated in the extracted content; unitholders should refer to the full circular/addendum for the record date and exit window period

Impact Assessment

• Unitholders of Kotak FMP Series 292 face a significant structural change: their investment moves from a close-ended fixed maturity plan (1,735-day tenure, higher interest rate risk) to an open-ended constant maturity index fund (lower interest rate risk, ongoing liquidity)
• Unitholders are entitled to exit without load during the exit window triggered by the fundamental attribute change
• The surviving scheme tracks a specific sectoral debt index (CRISIL-IBX Financial Services 9–12 Months), meaning continued investors will have exposure to financial sector debt instruments with 9–12 month maturities
• The change in structure from close-ended to open-ended improves liquidity for investors who remain
• Investors with a preference for fixed-tenor, higher-yield FMP structures may find the surviving scheme’s index-linked, sector-concentrated mandate unsuitable and should evaluate the exit option carefully