AMFI has truncated the settlement process from T+3 to T+2
27-Jan-2023 •Chirag Madia
From February 1, 2023, your equity fund money will hit your bank account a day sooner than usual.
In a press release on Friday, Association of Mutual Funds in India (AMFI) stated that all fund houses would move to transaction T+2 redemption payment cycle for equity schemes.
What does T+2 mean?
If you withdraw your equity mutual funds on Monday, the money should land in your bank account by Wednesday, provided there are no public holidays in between.
So far, the entire redemption process was T+3 days.
Faster processing
A Balasubramanian, chairman of AMFI and the MD & CEO of Aditya Birla Mutual Fund, said, "T+1 settlement cycle for Indian equity markets is a global first. As an industry, we want to pass on the benefit to our mutual fund investors, and hence, we are proactively adopting a T+2 redemption payment cycle for equity funds."
He referred to the fact that the Indian stock market shortened its trade cycle from T+2 to T+1 starting January 27, 2023.
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