Investor Services, Operations and Compliance
Onboarding and servicing
KYC (with PAN), FATCA/CRS, a unique client code, bank mandate and nomination are the basics of account opening. Investors then use lumpsum purchases, SIP (periodic purchase), STP (transfer between schemes of the same AMC) and SWP (periodic withdrawal). Servicing also covers folio changes, lien and pledge, transmission to nominees/legal heirs, and grievance redressal through the AMC, then SEBI SCORES and the online dispute resolution portal.
Cut-off and NAV applicability
The cut-off time is 3:00 p.m. for all schemes, except liquid and overnight schemes, where it is 1:30 p.m. For purchases, NAV applicability depends on realisation of funds, not merely on the application: if the application is time-stamped before cut-off and funds are realised before cut-off, the same day's NAV applies; otherwise the next business day's NAV. For cheques and other instruments of ₹2 lakh and above, the NAV of the day the funds are realised applies. For redemptions, NAV is that of the day the request is received before cut-off. Redemption proceeds must be paid within 3 business days for equity schemes and 1 business day for liquid and overnight schemes.
Compliance
Prevention of money laundering, KYC norms, insider-trading and fraudulent-practice rules, and the distributor code of conduct all apply. Unclaimed amounts beyond the prescribed period are transferred to the Investor Education and Protection Fund.
Traps
- Assuming a purchase gets the same-day NAV because the form was submitted - realisation is the test.
- Using the 3:00 p.m. cut-off for liquid funds.
- Confusing an STP with a SIP (STP moves money between schemes, not from a bank account).
Rule of thumb: form in time + money in time = today's NAV.