SEBI Revises NAV Cut-off for Overnight Fund Redemptions
Why in the news
SEBI announced new redemption cut-offs for overnight mutual fund schemes in April 2025 so brokers and clearing members can work after market hours.
Key facts
- Effective: June 1, 2025; online cut-off 7:00 PM.
- Rationale: allow after-hours un-pledging and redemption, avoid premature sale of underlying securities, match one-day-maturity instruments.
| Application mode | Rule |
|---|---|
| Offline, up to 3:00 PM | Previous business day’s closing NAV |
| Offline, after 3:00 PM | Next business day’s closing NAV |
| Online | Cut-off 7:00 PM |
About MFOS
- Low-risk: overnight government securities and TREPS (Tri-party Repo Dealing and Settlement).
- For short-term parking of surplus funds.
SEBI snapshot
- FY 2023-24 income ₹2,075 crore, up 48%.
- Set up April 12, 1988; Mumbai HQ; chairman Tuhin Kanta Pandey.
Exam angle
- Effective date: June 1, 2025.
- TREPS = Tri-party Repo Dealing and Settlement.