Business News: SEBI Planning to Change Cut-Off Time For NAV and Overnight Mutual Funds

Business News: On January 20, SEBI proposed adjustments to the cut-off period for calculating the Net Asset Value (NAV) of Mutual Fund Overnight Schemes. These schemes generally invest in one-day-maturity securities, providing investors with a low-risk, highly liquid choice for short-term investing. Investors can redeem their assets the next day, making these schemes an appealing option for people who need immediate access to their capital. SBI Overnight Fund, HDFC Overnight Fund, Axis Overnight Fund, and Kotak Overnight Fund are some of the most well-known overnight funds.

What Will Change?

The proposed expansion of the NAV cut-off time from 3 to 7 p.m. intends to increase flexibility in purchasing and selling Overnight Scheme units. This shift is especially important for stockbrokers and clearing members because units in these funds are held in Demat form and can be deposited with Clearing Corporations. The Mutual Fund Overnight Scheme continues to play an important role in the financial sector by providing secure short-term investing possibilities. SEBI’s proposal could have a substantial influence on investors’ convenience and operational efficiency in these schemes.