The CDSL issued a communique (CDSL/OPS/DP/SISO/2020/457) on October 19, 2020 regarding the revised cut-off timeline for mutual fund transactions, the switch in & switch out and redemption through DPs. It prompted DPs to refer to an earlier communique (CDSL/OPS/RTA/SISO/2020/188), which was issued by the CDSL on April 15, 2020, regarding the changes in the then existing cut-off time for NAV (3:00 p.m.) to the revised cut-off time for NAV (1:00 p.m.).
The recent communique from CDSL (CDSL/OPS/DP/SISO/2020/457) explained that as notified by SEBI, the cut-off timing for the applicability of NAV for both subscription of schemes as well as their redemption has been restored to the original cut-off timing, i.e. 3:00 p.m. with effect from October 19, 2020. This was to be applicable to all schemes other than those that were categorized as debt schemes and conservative hybrid funds.
The communique also explained that if a transaction was set up through a DP up to 3:00 p.m., then the NAV of the same day shall be applicable. If any transaction was set up through a DP after the cut-off time, i.e. after 3:00 p.m., then the NAV of the next trading day will be applicable.