Mutual Funds: There is good news for investors investing in mutual funds. Now investors will get money in their bank account on the third day of the transaction of selling units of mutual funds. Mutual funds houses have to transfer the money to the investor’s bank account within three days of the transaction.
Relief for mutual fund investors
The Association of Mutual Funds in India has announced that from February 1, 2023, the mutual fund industry will implement the T+2 settlement cycle in equity schemes. Amfi has issued a press release informing that from today the stock market has adopted the T+1 settlement cycle for all shares, which is one day less than before. To give this benefit to the investors of mutual funds, it has been decided that all asset management companies will adopt T+2 redemption payment cycle for equity schemes and this decision will be fully implemented from February 1, 2023.
AMFI Chief Executive N S Venkatesh said, “AMFI and all its member Asset Management Companies (AMCs) always keep the interest of the investors at the forefront. Ever since the day SEBI announced phased operation of equity markets for T+1 settlement cycle, the industry is gearing up to shorten the redemption payment cycle and we will see a shift to T+2 payment cycle with effect from February 1, 2023 is pleased to announce
T+2 in mutual funds means that if an investor sells his investment in equity schemes of mutual funds on Monday, then money will come to his bank account on Wednesday, which was received on the basis of first Thursday i.e. T+3 settlement cycle. used to do. A Balasubramaniam, MD & CEO, Aditya Birla Mutual Fund said, “The ‘T+1’ settlement cycle for the Indian equity markets is a first in the world. As an industry, we want to give benefits to our mutual fund investors and hence we are actively adopting ‘T plus 2’ redemption payment cycle for Equity Funds.
T+1 settlement rule applicable for stocks
Let us tell you that after buying stocks in the stock market from January 27, 2023, shares will be transferred to the investors’ demat account on the basis of T+1 settlement the next day, so if an investor has sold shares from the demat account, the money will be deposited in the bank account the very next day. Will come, which used to be received earlier T+2 i.e. after two days of the transaction day. Ajay Menon, MD-CEO, Broking and Distribution, Motilal Oswal Financial Services, said that India will be the first country to adopt a shorter trade settlement cycle in the equity market. This will help in completing the seamless transaction within 24 hours.
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