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SEBI’s New Regulations and Mutual Fund Updates: Key Changes You Need to Know
- Upstreaming Client Funds to Clearing Corporations (CCs): SEBI’s circular dated December 12, 2023, mandates that Stock Brokers (SBs) and Clearing Members (CMs) must upstream clients’ funds to Clearing Corporations (CCs) by the end of each business day. This can be done through cash, lien on Fixed Deposit Receipts, or by pledging units of Mutual Fund Overnight Schemes (MFOS). To streamline this process, SEBI has proposed a change in cut-off timings for determining the applicable Net Asset Values (NAVs) for repurchase of units in overnight schemes, effective from June 1, 2025. The new cut-off timings are as follows:
| Application Time | NAV Applicable |
|---|---|
| Applications received up to 3 PM | Closing NAV of the day preceding the next business day |
| Applications received after 3 PM | Closing NAV of the next business day |
| Online Applications | 7 PM cut-off for the applicable NAV |
These adjustments are intended to improve the processing and safeguarding of clients’ funds, ensuring smoother operations for both investors and clearing members.
2. Automated Trading Window Closure for Immediate Relatives of Designated Persons (DPs)
SEBI has also extended the automated implementation of the trading window closure to immediate relatives of Designated Persons (DPs) in listed companies. This new measure ensures compliance with the Prohibition of Insider Trading (PIT) Regulations.
- The trading window will close from the end of every quarter until 48 hours after the declaration of financial results.
- The implementation of this framework will occur in phases:
- Starting July 1, 2025, for the top 500 companies
- From October 1, 2025, for other companies.
This initiative aims to strengthen market surveillance, enhance transparency, and ensure investor protection by freezing the PAN of DPs at the security level during sensitive periods.
- New Fund Offerings (NFOs) Launched by AMCs: Several Asset Management Companies (AMCs) have recently launched new fund offerings (NFOs), providing investors with additional options to diversify their portfolios. The NFOs include various strategies tailored to different market segments and risk appetites:
| AMC | Fund Name & Focus | Investment Strategy |
|---|---|---|
| Nippon AMC | Nippon India Nifty 500 Quality 50 Index Growth Direct Plan | Focus on quality companies within the Nifty 500 index |
| Nippon India Nifty 500 Low Volatility 50 Index Growth Direct Plan | Focus on low volatility stocks in the Nifty 500 index | |
| SBI AMC | SBI Income Plus Arbitrage Active FoF Growth Direct Plan | Provides a balanced approach to investment |
| Bajaj AMC | Nifty Next 50 Index Growth Direct Plan | Focus on the Nifty Next 50 index for broad market exposure |
| Nifty 50 Index Growth Direct Plan | Exposure to the Nifty 50 index | |
| Groww AMC | Gilt Growth Direct Plan | Focus on government securities for safer returns |
| Motilal Oswal AMC | Infrastructure Growth Direct Plan | Focus on infrastructure sector growth |
| Edelweiss AMC | BSE Internet Economy Index Growth Direct Plan | Focus on the digital and internet economy sectors |
These NFOs provide investors with the opportunity to tailor their investments to specific sectors, risk preferences, and market outlooks.
Disclaimer: The information provided in this article is for educational and informational purposes only. It does not constitute investment advice or a recommendation to buy or sell any securities. Mutual fund investments are subject to market risks. Investors should consult with a certified financial advisor before making any investment decisions. The data is sourced from BSE, NSE, and Kuvera unless otherwise stated.
