SEBI allows net settlement of funds for MFs from April
Move to ease funding needs, improve liquidity management and boost operational efficiency for AMCs
SEBI has announced that mutual fund schemes will be allowed to adopt net settlement of funds for outright transactions in the cash market from April 2027. This move aims to reduce temporary funding requirements, improve liquidity management, and enhance operational efficiency for asset management companies. Under the new framework, MF schemes will be permitted to net their purchase and sale fund obligations arising from eligible transactions in the same settlement cycle, which is expected to ease funding requirements and improve fund deployment and cash management.
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