Important update: Recent regulatory changes applicable on Liquid and Overnight Fund

Dear Investor,

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:

  1. All the subscription transactions (including switch-in) processed with NAV of October 21, 2019, and thereafter, irrespective of receipt of application.
  2. 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:

exit load

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.

Leave a Reply

Your email address will not be published. Required fields are marked *