SEBI had earlier truncated the cut-off time due to COVID-19-related disruptions
The cut-off time for investing, as well as withdrawing from equity schemes at same day's NAV, will be restored to 3pm from next week.
In a letter dated October 15, 2020, which is reviewed by Moneycontrol, the Securities and Exchange Board of India (SEBI) told the Association of Mutual Funds in India (AMFI) that the cut-off timings “for all schemes other than those categorised as debt schemes and conservative hybrid fund… may be restored to the original cut-off timing of 3pm. Effective from October 19,2020.”
Nilesh Shah, chairman of AMFI, also confirmed the development in a tweet on Thursday.
In light of Covid-19 and disruptions caused in the financial services segment, SEBI had earlier truncated the cut-off time to 1pm. For liquid and overnight schemes, the cut-off time was reduced from 1.30pm to 12.30pm and it will continue to remain so for now.“For very active investors, this move may help as the cut-off time is now closer to the market close time of 3.30pm. So, the investor can make a better judgment,” said Kirtan Shah, chief financial planner, SRE.