Mutual Funds
NSE Clearing Ltd (NCL) conducts settlement of mutual fund transactions on “MFSS” platform of National Stock Exchange of India Limited (NSE). The clearing and settlement mechanism provides for settlement of funds and mutual fund units in case of subscription and redemption orders. From July 1, 2022 all orders for subscription and redemption placed at NSE MFSS platform are settled directly to the investors in accordance with the SEBI circular.
Clearing Corporation follows settlement schedule in accordance with the settlement cycle defined for various schemes of asset management company (AMC). NSE Clearing is only a facilitator and not a counter party for the subscription and redemption of units.
Settlement Schedule for Subscription and Redemption is as follows:
Category | Settlement Type | Market Timings | Funds (Cut off Time/Day) | Units (Cut off Time/Day) |
HLIQUID* | K | 9.00 am to 01.00 pm | 01.00 pm on T day
| T day
|
NORMAL Subscription | S | 9.00 am to 02.30 pm | 02.30 pm on T day
| T+1 day
|
NORMAL (NFO)
| S | 9.00 am to 03.00 pm | 03.00 pm on T day
| NA **
|
NORMAL (Redemption) | U | 9.00 am to 03.00 pm | T+1 day to T+8 day
| 04.30 pm on T Day
|
*Historical NAV for liquid subscriptions (HLIQD)
** Units settlement is done directly by AMC to investor
The settlement for Mutual Funds Service System is carried out by NCL through the depository and bank interface.
For demat transactions the units are credited to the investors’ demat account by clearing corporation as per the settlement schedule and based on the allotment information provided by the RTA and the depository pay-in files. For non-demat the units are credited and debited directly to folio account by RTA.
The details of mutual fund settlement are given in consolidated circulars issued by NCL.
List of important circulars
Joint Operating Guidelines Issued by Stock Exchanges and AMFI