The announcement has come on the heels of Indian equity markets moving to a T+1 settlement cycle for all stocks.
Up till now, mutual funds were following the T+3 redemption payment cycle.
In a move to benefit mutual fund investors, all asset management companies (AMCs) in India will move to T+2 — shorthand for “trade date plus two days” — redemption payment cycle for equity schemes from February.
In an announcement on January 27, the Association of Mutual Funds in India (AMFI) said that the move will be implemented uniformly with effect from February 1, 2023, (i.e., for all transactions received before cut off timing on February 1, 2023, and processed at closing NAV for February 1 2023) after allowing a couple of days for the settlement cycle /process to stabilise.
The announcement has come on the heels of Indian equity markets moving to a T+1 settlement cycle for all stocks, shortening the settlement cycle by a day and making the availability of funds a day sooner than at present.
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