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Sebi allows mutual fund schemes to net cash market fund settlements
Sebi's regulatory allowance for mutual fund cash market settlement netting signals operational easing.
Context
What happened: Sebi has allowed mutual fund schemes to net settlement obligations for outright cash market transactions within the same scheme and settlement cycle, per a circular issued on Thursday.
Key numbers: Rules take effect 1 April 2027.
Why it matters: The regulator says the move aims to reduce temporary funding requirements and improve operational efficiency. Netting is limited to a single scheme, and gross settlement of securities is unchanged.
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What changed
Sebi has allowed mutual fund schemes to net settlement obligations for outright cash market transactions within the same scheme and settlement cycle, per a circular issued on Thursday.
Why it matters
The regulator says the move aims to reduce temporary funding requirements and improve operational efficiency. Netting is limited to a single scheme, and gross settlement of securities is unchanged.