You are here: Home » Budget » Run-up » Markets
Business Standard

Mutual fund investors cannot buy or sell on Budget day

According to an industry source, it will be a non-business day for mutual funds on the Budget day

Press Trust of India  |  New Delhi 

Investors will not able to buy and redeem mutual fund units on February 28 even as stock remain open on Saturday when Finance Minister Arun Jaitley will present the much-awaited Union

"It will be a non-business day for mutual funds on the day. An investor cannot buy and sell MF products on a non-business day," an industry source said..

Read our full coverage on Union Budget

Generally, Saturdays and Sundays are non-business days for mutual funds.

MF houses do not allot net asset value (NAV) of debt or equity funds on non-business days and the allotments to funds are resumed on the following business day.

The decision to keep this Saturday a non-business day means that equity MF investors would not be able to cash in on any opportunity on day.

However, trading in exchange traded funds (ETFs) will be allowed, sources said.

Last week, capital regulator Sebi asked the stock exchanges including, the BSE and the NSE, to keep the open on Budget day, following requests made in this regard.

This is probably the first time in many years that the Union Budget is being presented on a Saturday. The stock markets are generally closed on Saturdays and Sundays, except for special circumstances.

As Budget contains several market-moving announcements, market participants, including stock exchanges, had requested the Sebi and the government to keep markets open on February 28.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Wed, February 25 2015. 15:54 IST