From 1 April 2027, mutual fund schemes may net funds for...

From 1 April 2027, mutual fund schemes may net funds for outright cash-market transactions within the same scheme and settlement cycle. An outright transaction is a purchase or sale, but not both, in the same security during that cycle; transactions involving both are excluded from netting and settled on a gross basis. Cross-scheme netting is prohibited, and excess outright sale proceeds cannot offset non-outright purchase obligations. Each scheme must fund any residual outright purchase obligation. Derivatives, securities lending and borrowing, and short-sale-related transactions are excluded. Securities remain subject to gross, delivery-backed settlement, with applicable securities transaction tax and stamp duty charged on delivery. AMCs and custodians must maintain scheme-level controls and jointly confirm system readiness; custodians must retain an audit trail. Trustees must review implementation, and AMFI must formulate implementation standards in consultation with relevant stakeholders.