NSE to begin overnight investment facility from today
Country's top stock exchange National Stock Exchange, NSE, will introduce an overnight liquid transaction facility on its web-based Mutual Fund platform, from today. The facility will enable traders, especially small investors, to invest even for a single night in liquid funds. A similar product was introduced last month by Bombay Stock Exchange, BSE. The exchange has seen daily transactions worth 400-500 crore rupees in the product so far.
In a circular, the NSE said, exchange is now introducing an order entry functionality which shall allow the participants to place purchase and redemption orders simultaneously in liquid schemes. Participants shall be allowed to enter overnight orders in liquid scheme between 9:00 am to 1:00 pm. The exchange will provide a separate window to place overnight orders on the web-based platform.
The exchange said, under the new facility, all liquid schemes allowed by respective asset management companies will be available for placing orders. Participants shall enter the subscription and redemption order simultaneously in overnight liquid order entry window. Mutual Fund Service System is an online order collection system provided by the NSE to its eligible members for placing subscription or redemption orders.