Key Announcement
The Securities and Exchange Board of India (SEBI) has announced revised cut-off timings for determining the Net Asset Value (NAV) applicable to repurchase/redemption of units in Mutual Fund Overnight Schemes (MFOS). The changes aim to accommodate stock brokers (SBs) and clearing members (CMs) by allowing flexible post-market redemption processes.
Revised NAV Cut-off Timings
- Offline Applications
- Up to 3:00 PM: Previous business day’s closing NAV
- After 3:00 PM: Next business day’s closing NAV
- Online Applications
- Cut-off time: 7:00 PM
- Effective Date: June 1, 2025
Objective & Rationale
- Facilitate after-market hour un-pledging and redemption by brokers and clearing members
- Avoid premature selling of underlying securities by mutual funds
- Align redemption flexibility with the nature of overnight securities, which have one-day maturity
About MFOS
- Invest in low-risk instruments:
- Overnight government securities
- TREPS (Tri-party Repo Dealing and Settlement)
- Suitable for short-term parking of surplus funds
- Units held in demat form and are mandatorily pledged with clearing corporations
- Designed to offer liquidity with minimal risk
Recent SEBI Financial Update (FY 2023-24)
- Total Income: ₹2,075 crore
- YoY Growth: 48%
- Revenue Source: Primarily from fees and subscriptions
About SEBI
- Established: April 12, 1988 (Statutory powers from Jan 30, 1992)
- Headquarters: Mumbai, Maharashtra
- Chairman: Tuhin Kanta Pandey
- Mandate: Regulates securities and commodities markets in India
- Under: Ministry of Finance, Government of India
