India's equity Mutual Funds to move to two-day settlement

MUMBAI (Reuters) – Equity mutual funds in India will be settled within two days starting February, instead of the prevalent three day settlement cycle, an industry body said on Friday.

The move for a shorter settlement period for equity mutual funds follows Indian markets completing a shift to a one-day settlement cycle on Friday.

“It has been decided all Asset Management Companies (AMCs) will move to T+2 redemption payment cycle for equity schemes, and implement this uniformly with effect from Feb. 1, 2023,” the Association of Mutual Funds in India said in a statement.

(Reporting by Jayshree P Upadhyay in Mumbai; Editing by Nivedita Bhattacharjee)