AMFI has announced that all AMCs or mutual funds will now move to T+2 redemption payment cycle for equity funds. What this means is that going forward, under the T+2 redemption cycle, the money from redemption will be credited to the investor’s bank account on the second day from the day ‘T’ (in market parlance), the day on which the units were sold before the cutoff timings.
This will be implemented from 1st February 2023.
Announcement – Link
This welcome change will lead to quicker settlement and faster liquidity for mutual fund investors. Till now, it used to take about three days for this settlement (under T+3 cycle). This changes comes after SEBI announced the that equity markets will now move to T+1 settlement cycle, which is a global first.