Important update: Recent regulatory changes applicable on Liquid and Overnight Fund
This is to update you that SEBI has introduced a graded Exit Load structure for Liquid scheme vide Circular No. SEBI/HO/IMD/DF2/CIR/P/2019/101 dated September 20, 2019. Accordingly, SEBI has decided to implement a graded exit load in all liquid funds w.e.f. October 20, 2019.
The graded exit load shall be applicable on a prospective basis to the following transactions:
- All the subscription transactions (including switch-in) processed with NAV of October 21, 2019, and thereafter, irrespective of receipt of application.
- All the systematic transactions such as Systematic Investment Plan and Systematic Transfer Plan etc. where registrations /enrolments/installments of existing registrations have been done on or after NAV date of October 21, 2019.
Note: All other features, terms, and conditions pertaining to the schemes shall remain unchanged.
Please find below the grid on graded exit load to be levied on the liquid funds:
Another, important change for Liquid & Overnight schemes as per SEBI Circular No. SEBI/HO/IMD/DF2/CIR/P/2019/101 dated September 20, 2019, is the change in cut-off timings for applicability of Net Asset Value (NAV) with respect to purchasing of units in Liquid Funds & Overnight Funds with effect from October 20, 2019.
Accordingly, the cut-off timings for the applicability of Net asset value (NAV) in respect of the purchase of units in Liquid Funds and Overnight Funds shall be changed from existing 2:00 p.m. to 1:30 p.m. with effect from October 20, 2019.