SEBI has issued a circular permitting mutual fund schemes to net-settle funds for eligible outright cash market transactions from April 1, 2027. The framework lets schemes offset payables against receivables within the same scheme and settlement cycle, reducing temporary funding needs. Securities settlement stays on a gross basis, and netting is barred across schemes or portfolios.
SEBI Allows Mutual Funds to Net-Settle Cash Market Trades from April 2027
Source: Moneycontrol