Sebi lets mutual fund schemes net cash market settlements
In short
Sebi has allowed mutual fund schemes to net cash market fund settlements. It changes how cash obligations are handled for eligible mutual fund trades, while securities still have to be settled on a gross basis.
This should make settlement handling simpler for mutual funds and market participants using the eligible process.
What the reporting says
Sebi allowed mutual fund schemes to net cash market fund settlements, changing how obligations are treated for eligible transactions. The move keeps securities settlement on a gross basis while allowing cash obligations to be netted. The change affects mutual fund operations and settlement handling for eligible trades under Sebi’s framework.
Why it matters
Sebi allowed mutual fund schemes to net cash market fund settlements for eligible transactions, while keeping securities settlement on a gross basis. The change affects mutual fund operations and the way fund obligations are handled in the market. It is a settlement-rule update, not a change to the underlying requirement for securities delivery.