Cut-off Time & Time Stamping Rules

This is one of the most exam-heavy topics in NISM VA, and for good reason — it directly impacts how much an investor pays for units or receives on redemption. Here is a thorough walkthrough of the rules. The basic principle is straightforward: if a transaction reaches the AMC (and the money is realized in the AMC's bank account) before the cut-off time, the investor gets that day's NAV. If it arrives after the cut-off, the next business day's NAV applies. For equity, balanced, and debt funds: the cut-off time is 3:00 PM for both purchase and redemption. For example, if an investor submits a ₹1,00,000 purchase order with a cheque that is deposited and realized before 3:00 PM on Monday, the investor gets Monday's NAV. If the cheque is deposited at 3:15 PM, Tuesday's NAV applies. For liquid and overnight funds: the cut-off is different and tighter. For purchase, it is 1:30 PM. For redemption, it is 3:00 PM. This is because liquid funds invest in very short-term instruments and need earlier clarity on daily inflows. A critical nuance that is often overlooked: for purchase transactions of ₹2 lakh and above, NAV applicability is based on the date of REALIZATION of funds (when the money actually reaches the AMC's bank account), not the date of submission of the application. This means even if the form is submitted before 3 PM, if the cheque takes 2 days to clear, the NAV of the day the funds are realized applies. Time stamping is the proof mechanism. For physical transactions, the collection centre stamps the date and time on the acknowledgment slip. For online transactions, the system automatically records the timestamp. This timestamp serves as the evidence for which NAV applies — disputes are resolved based on this.