GENERAL3 Sept 2026
Sebi proposes net settlement of funds for mutual fund trades | Stock Market News
Mutual fund schemes may soon pay only the net cash due on share trades, not the full amount, under a new Sebi proposal. Currently, a scheme must arrange money for its purchases separately, even when sales also bring in cash. So a scheme buying ₹100 crore and selling ₹90 crore would settle just ₹10 crore. Securities still move fully, and comments are invited till 24 September.
Key Statutory Highlights
- Sebi has proposed allowing mutual fund schemes to settle cash obligations on a net basis, while securities continue on gross, delivery-based settlement.
- For example, if a scheme buys securities worth ₹100 crore and has eligible sales worth ₹90 crore, it could settle just the net ₹10 crore.
- Netting is not allowed when a scheme buys and sells the same security in the same cycle, and it can only happen within one scheme, not across schemes.
- Sebi has invited public comments on the proposal until 24 September.
Actionable Advice for Taxpayers / Founders:No immediate action is needed. If you wish, you can send your views to Sebi by 24 September, but any change will apply only after the final framework is notified.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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