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Ch.5 · SID, SAI and KIM Documents · hard

What is the cut-off time for liquid fund purchases?

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EXPLANATION

For liquid funds, SEBI has a specific cut-off rule: purchases submitted before 1:30 PM with funds realised by the AMC get the previous day's NAV (T-1 NAV). Purchases submitted after 1:30 PM get the current day's NAV. This unique rule for liquid funds prevents arbitrage through last-minute large investments.

A.3:00 PM for same-day NAV

B.1:30 PM for previous day's NAV [✓ Correct]

C.1:30 PM — transactions before 1:30 PM get same day's NAV, after 1:30 PM get next day's NAV

D.12:00 noon for same-day NAV

EXPLANATION

For liquid funds, SEBI has a specific cut-off rule: purchases submitted before 1:30 PM with funds realised by the AMC get the previous day's NAV (T-1 NAV). Purchases submitted after 1:30 PM get the current day's NAV. This unique rule for liquid funds prevents arbitrage through last-minute large investments.

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