Business Standard

Mutual funds adopt T+2 settlement cycle for redemption payouts

Move comes two months after Sebi mandated MFs to pay investors within three days of redemption

overseas securities
Premium

Abhishek Kumar Mumbai
Starting next month, mutual funds will deposit the redemption amount from equity schemes in investors’ bank accounts within three days of the transaction. The Association of Mutual Funds in India (Amfi) announced on Friday that the industry will move to a T+2 settlement cycle for equity schemes from February 1.

"From today, the Indian equity markets move to T+1 settlement cycle for all stocks, shortening the settlement cycle by a day... To pass on this benefit to mutual fund investors, it has been decided all asset management companies (AMCs) will move to T+2 redemption payment cycle for equity schemes, and

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Jan 27 2023 | 6:25 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on business-standard.com are available only to BS Premium subscribers.

Register to read more on Business-Standard.com