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HOT News From SEBI’s Room:
“On Friday, 30th July 2021, SEBI allowed asset management companies to offer instant access facility in overnight mutual fund schemes”……
What’s The Whole News?
The regulator of mutual funds in India, SEBI (Security Exchange Board In India), announced on 30th July that instant access facility (IAF) would now be permitted in overnight mutual funds. That means investors of overnight mutual funds would now receive redemption amounts on the same day of the redemption request.
Earlier instant access facility was allowed only in Liquid Mutual Funds!
In a circular, Sebi said, “MFs/ AMCs can offer Instant Access Facility (IAF) only in overnight and liquid schemes of the MF”.
What are Other Trending Announcements?
There was one more announcement included in the circular for the unclaimed redemption and dividend amounts. SEBI said that currently the unclaimed redemption and dividend amounts are allowed to deploy only in call money market instruments, money market instruments.
However, from 1st December 2021, unclaimed redemption and dividend amounts shall also be allowed to be invested in a separate plan of only Overnight scheme / Liquid scheme / Money Market Mutual Fund scheme floated by Mutual Funds specifically for the deployment of the unclaimed amounts.
The unclaimed redemption and dividend amounts will be allowed to deploy only in Overnight scheme/ Liquid scheme / Money Market Mutual Fund schemes, that are categorized in the A-1 cell of the Potential Risk Classis Matrix.
The regulator said the framework related to IAF will be applicable with immediate effect while those pertaining to unclaimed redemption and dividend amounts will come into effect from December 1.
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Happy Investing!
(Mutual Fund investments are subject to market risk Illustrations are for example only, there is no guarantee of returns. Past performance is not an indicator/guarantee to future returns).