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SEBI allows instant access facility in overnight schemes of mutual funds

SEBI also announced that, from December 1, 2021, unclaimed redemption and dividend amounts would be permitted for investment in a separate plan of only overnight scheme.

July 30, 2021 / 07:00 PM IST
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The Securities and Exchange Board of India (SEBI) announced on July 30 that instant access facility would now be permitted in overnight schemes along with liquid schemes of mutual funds.

The change has been brought into effect by the market regulator by partially modifying its circular related to instant access facility issued in May, 2017.

"MFs (All Mutual Funds)/ AMCs (Asset Management Companies) can offer Instant Access Facility (IAF) only in Overnight and Liquid Schemes of the MF," the fresh circular issued by SEBI stated.

Also Read | SEBI allows a common platform for mutual fund investors’ service requests

SEBI also announced that, from December 1, 2021, unclaimed redemption and dividend amounts would be permitted for investment in a separate plan of only overnight scheme.

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"The unclaimed redemption and dividend amounts, that are currently allowed to be deployed only in call money market or money market instruments, shall also be allowed to be invested in a separate plan of only Overnight scheme / Liquid scheme / Money Market Mutual Fund scheme floated by Mutual Funds specifically for deployment of the unclaimed amounts," it said.

"Such schemes where the unclaimed redemption and dividend amounts are deployed shall be only those Overnight scheme/ Liquid scheme / Money Market Mutual Fund schemes which are placed in A-1 cell (Relatively Low Interest Rate Risk and Relatively Low Credit Risk) of Potential Risk Class matrix," SEBI added.
Moneycontrol News
first published: Jul 30, 2021 07:00 pm
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