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Sebi approves net settlement of cash market trades for mutual funds
Sebi approval enables net settlement for mutual fund cash trades, reducing settlement obligations.
Context
What happened: Sebi approved net settlement of cash market trades for mutual fund schemes, effective April 1, 2027. Previously this was available only to foreign portfolio investors.
Key numbers: Effective date April 1, 2027.
Why it matters: The measure is designed to streamline funding requirements and boost market efficiency. Cross-scheme netting remains prohibited, and eligibility is limited to sales or purchases of a specific security.
What changed
Sebi approved net settlement of cash market trades for mutual fund schemes, effective April 1, 2027. Previously this was available only to foreign portfolio investors.
Why it matters
The measure is designed to streamline funding requirements and boost market efficiency. Cross-scheme netting remains prohibited, and eligibility is limited to sales or purchases of a specific security.
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Nov 05, 2026 03:39 PM ET