Sebi proposed allowing net fund settlement for mutual fund cash market trades. This move aims to ease temporary liquidity pressures and improve settlement efficiency. Mutual funds can now net purchase and sale funds within the same settlement cycle. Securities settlement will continue on a gross, delivery basis under the new proposal. This change addresses market participant feedback regarding liquidity and operational inefficiencies.

Sebi has proposed allowing mutual fund schemes to settle cash-market fund obligations on a net basis for eligible outright transactions. The move could ease temporary liquidity…

SEBI proposes net settlement for mutual fund cash market transactions to enhance efficiency and address liquidity issues, inviting public feedback.