NAV on Purchase of MFs
Till now, purchases upto INR 2 lakhs were allotted units based on the NAV of the day the purchase request was made provide the request was submitted before 1 PM. Going forward, units will be allotted based on the NAV of the day the AMC / Scheme realises the monies. This rule change will affect investors who use cheques or drafts to purchase mutual funds.
However, this change does not affect Liquid or Overnight funds.
Multi-cap Fund Allocations
Sebi’s new rules for multi-cap equity funds have made it mandatory for them to have at least 75 per cent of their allocation in equities and equity-related instruments, with minimum of 25 per cent allotted to each category: Large-cap, mid-cap and small-cap stocks.
Earlier, most multi-cap funds were biased towards large-cap stocks and gave similar returns as large-cap funds.
The limits for contactless transactions using cards (credit / debit), e-mandates and through UPI has been hiked from INR 2,000 to INR 5,000. Further, users will now be able to wave their contactless cards across more categories. Food, grocery and fuel were the primary categories that drove contactless transactions. However, with the upward revision of limits, users can use this facility across other categories like health care, apparel and restaurants.
Cheque payment gets safer
From January 1, RBI has started implementing its ‘positive pay system’ (PPS) cheque initiative. This system requires cheque issuers to submit cheque details like beneficiary name, amount and cheque date to the drawee bank through channels like SMS, mobile banking, Internet banking and ATM for processing. PPS will be available for all account holders issuing cheques of more than Rs 50,000 and will be mandatory for cheque amounts of Rs 5 lakh and above.
FASTag to become compulsory
All four-wheelers will have to have FASTag from January 1, 2021. Making FASTag compulsory will pave the way for its wider application, such as paying for parking, fuel, and inter-state movements, and e-challan.