Discontinuation of L0 & L1 settlement for Mutual fund schemes on BSE StAR MF Platform

NOTICES

Notice No.		20240129-1		Notice Date		29 Jan 2024
Category		Trading		Segment		Mutual Fund
Subject		Discontinuation of L0 & L1 settlement for Mutual fund schemes on BSE StAR MF Platform
Content

Members arehereby informed that, Exchange had created L0 & L1 settlement type for Mutual fund schemes in scheme masters for execution of subscription orders in Liquid/Non-Liquid schemes on BSE StAR MF Platform to avail the below benefits for their clients.<_u13a_p><_o3a_p>

Transaction Type<_u13a_p><_o3a_p>	Settlement Type<_u13a_p><_o3a_p>	Order Processing Functionality<_u13a_p><_o3a_p>
1. Liquid and overnight Schemes<_u13a_p><_o3a_p>	L0<_u13a_p><_o3a_p>	Historic NAV or T-1 day NAV<_u13a_p><_o3a_p>
2. All schemes other than Liquid and overnight Schemes<_u13a_p><_o3a_p>	L1<_u13a_p><_o3a_p>	Rs. 2 lakhs and above investment<_u13a_p><_o3a_p>

As per the SEBI Circular No. SEBI/IMD/DF2/CIR/P/2020/253 dated December 31, 2020, with regard to Uniformity in applicability of Net Asset Value (NAV) across various schemes upon realisation of funds, purchase of units of mutual fund schemes (except liquid and overnight schemes), closing NAV of the day shall be applicable on which the funds are available for utilization irrespective of the size and time of receipt of such application (Refer BSE notice number 20201202-32).<_u13a_p><_o3a_p>

In view of the above, Exchange shall discontinue the settlement type of L0 and L1 in Scheme master with effect from April 1, 2024. Accordingly, L0/L1 schemes shall not be available in Scheme master.<_u13a_p><_o3a_p>

Members arerequested to note that, all future Lump sum transactions (Fresh and Additional purchase) & SIP registrations needs to be executed by members only through Liquid and overnight as well other than Liquid and overnight schemes available on BSE StAR MF Platform so clients will get applicable NAV (Refer BSE notice number 20201107-2 & 20210130-4).<_u13a_p><_o3a_p>

The subscription orders received in Liquid and overnight as well other than Liquid and overnight schemes shall get reported to the respective Registrars on transaction/Business Day itself as per the cut off time provided in above table subject to fund confirmation uploaded/received.<_u13a_p><_o3a_p>

Further, below process shall be followed for shifting of unsettled transactions & registrations which are available under L0 & L1 settlement schemes to respective schemes regular scheme plan & option available on BSE StAR MF Platform.<_u13a_p><_o3a_p>

• Unsettled Lump sum transactions (Fresh and Additional purchase) & SIP orders for fund confirmation not uploaded/received from payment aggregators.<_u13a_p><_o3a_p>
• Existing SIP/XSIP/ISIP registrations available under L1 shall be shifted to normal scheme.<_u13a_p><_o3a_p>

MFIs/MFDs/RIAs/ using third party vendor solutions and/or in-house developed trading application are requested to take note of the above changes and arrange to initiate necessary development.<_u13a_p><_o3a_p>

Members can reach us through our Mutual fund Helpdesk numbers on 022-45720450 and 022-45720650 on business day between 8:00am to 7:00pm. You can also raise your queries on our CRS portal: - https://bsecrs.bseindia.com <_u13a_p><_o3a_p>

<_o3a_p>

Ketan Jantre Zeeta Eustace<_u13a_p><_o3a_p>

Chief General Manager - Mutual Funds Dy. General Manager - Mutual Funds

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