Sebi extends reduced cut-off time for MFs subscription, redemption

Markets regulator Sebi has decided to extend the reduced cut-off time for subscription and redemption of mutual funds, includingliquid and overnight schemes, tillApril 30 amid the ongoing nationwide lockdown to deal with coronavirus pandemic.

Earlier, the revised timings were applicablefrom April 7-17. The move comes after theReserve Bank of India (RBI) extended reduced trading hours for debt market.

Sebi has decided to extend the reduced cut-off timing for both subscription and redemption in mutual fund schemes till April 30, 2020,according toa communication from the Association of Mutual Funds in India (AMFI).

In case of subscription of liquid and overnight schemes, the regulator has revised time to12:30 pm,while the same for other schemes is1pm.

With respect to redemption of liquid,overnight and other mutual funds, Sebi has revised the timing to1 pm.

Earlier, the cut-off time for liquid and overnight funds was1:30 pm, while the same for other funds was 3 pm.

In a separate statement, BSE has announced the revised timings for subscription and redemption of liquid, overnight and other schemes on its mutual fund distribution platform, StAR MF.

Liquid funds invest in cash assets such as treasury bills, certificates of deposit and commercial paper for shorter horizon andovernight funds invest in securities with maturity of one day.

The offices of the asset management companies and Registrar & Transfer Agents (RTA) are closed amid a nationwide lockdown.

Industry body Amfiadvised investors to transact through various online modes such as mobile applications and websites among others.

On Thursday, RBI said the limited trading hours of debt as well as currency market will remain in force till April 30 amid extension of the countrywide lockdown. The trading hours for various RBI regulated markets were amended as 10.00 am to 2.00 pm.

The nationwide lockdown has been extended till May 3 to contain the spread of coronavirus pandemic.