T+1 / T+2 settlement in mutual funds

Tue, 19 May 2026 00:00:00 +0000

T+1 / T+2 settlement refers to the timeline between transaction date (T) and money/units settlement in Indian mutual funds. SEBI’s reforms over 2021 to 2024 shortened settlement timelines: equity MF redemption moved from T+3 to T+2, and subsequently to T+1 for select categories, aligning Indian MF operations with the broader securities-market settlement reform.

Settlement framework

Redemption settlement

Liquid funds: T+1 (since long-standing rule).
Equity / hybrid MFs: T+2 (reduced from T+3 in 2022-2023).
Debt MFs: Per category, typically T+1 to T+3.

Subscription unit allotment

Liquid funds: Same-day or next-day units per applicable NAV / cut-off rule .
Equity / debt: T+1 unit allotment.

Cut-off compliance

Per NAV cut-off reform (Feb 2021) , for amounts above Rs 2 lakh, money-realisation by cut-off is required for same-day NAV.

T-Plus-1-T-Plus-2-Settlement on WebNotes

T+1 / T+2 settlement in mutual funds

Settlement framework

Redemption settlement

Subscription unit allotment

Cut-off compliance