Mutual funds investors will not be able to make fresh investment or sell their units on Budget day because subscription and redemption are closed on Saturdays and Sundays, industry officials said.
Illustration: Dominic Xavier/Rediff.com.
Mutual funds subscriptions and redemptions will not be permitted because all the fund houses in their scheme information documents have declared Saturday and Sunday as "non-business day".
Consequently, mutual funds investors will not be able to participate like others participants in stock markets.
“Tomorrow, stock exchanges are open but mutual funds are closed for subscription and redemptions,” said Omkeshwar Singh, head of mutual fund distribution business at Samco.
Investors through equity and derivatives can participate but investors through mutual funds will not be able to participate, he added.
In case of any change in non-business day, fund houses need to issue notices to investors and publish advertisements in leading newspapers which is a lengthy process.
Stock markets will be open for normal trading on February 1, Saturday, when the Union Budget will be presented by Finance Minister Nirmala Sitharaman.
Trading would be conducted during normal hours from 9 am to 3.30 pm.
According to markets sources, the decision has been taken following requests made in this regard by market participants as Budget contains several market-moving announcements.
In 2015, stock exchanges were open for trading on February 28, Saturday, when then Finance Minister Arun Jaitley had presented the Budget.