Moneycontrol Be a Pro
Get App
Last Updated : Dec 08, 2016 09:24 AM IST | Source: Moneycontrol.com

Sebi may enable instant credit of liquid MF redemption money

The Securities and Exchange Board of India is working on new rules to enable instant credit of funds to investors‘ bank accounts on redemption of a liquid mutual fund, an article in the Mint says.


Moneycontrol Bureau

The Securities and Exchange Board of India is working on new rules to enable instant credit of funds to investors’ bank accounts on redemption of a liquid mutual fund, an article in the Mint says.


This will make the entire process of liquidating investment in a fund as smooth as transferring funds to a mobile wallet.


Currently, redemption money gets credited to a customer’s account only the next working day or two days after the request in case the immediate payment service (IMPS) is not opted for. This makes liquid funds disadvantageous compared to bank fixed deposits.

Close

Instant credit facility will also help boost inflows and attract more retail customers to such funds. There is roughly Rs 2.78 lakh crore managed under liquid funds currently, and retail customers account for about 3 percent.


Not sure which mutual funds to buy? Download moneycontrol transact app to get personalised investment recommendations.
First Published on Dec 7, 2016 09:23 am
Loading...
Sections
Follow us on
Available On
PCI DSS Compliant