SEBI announces cash market netting for mutual funds April 2027
Business
Securities and Exchange Board of India (SEBI) just announced a rule change for mutual funds: from April 2027, they will be able to net their cash market buy-and-sell transactions.
In simple terms, this means mutual funds can settle only the difference between what they buy and sell in a single scheme, making the whole process faster and easing short-term cash needs.
Netting limited to same scheme cycle
Only outright buys or sells (not both together) within one settlement cycle can be netted, so no mixing or matching between schemes or cycles.
If a scheme buys more than it sells, it still has to cover any shortfall separately.
Also, all securities will keep settling on a gross basis, with Securities Transaction Tax and stamp duty still applying.