Hi,
I see that the cutoff timings for Equity mutual funds were revised earlier this year by SEBI to 3pm. I also see that Zerodha’s (Coin) corresponding cut-off time is 2PM. But very recently, I see that even for orders placed as early as 1:15pm on Coin, the next day’s NAV is being allotted instead of the same day. This is not a once off allotment either. I am seeing this happening more than once very recently. Can I understand why this is happening and if there is a way to make sure that the same day NAV gets allotted either by a particular mode of payment (UPI/Netbanking) etc or any other way?
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@sunilmohandoss Hi, this is likely due to the payment aggregator reporting the funds after the cut-off time, the applicable NAV will be that of the next trading day. You can open a ticket here, and we’ll clarify this for you.
I already opened a ticket. And got a poor response from Zerodha Support team. Thats the reason I asked the same query here.
Ticket #20241008689819
But, is this issue being looked into?
Or is this how it will be and you can’t guarantee allotment at T-day’s NAV irrespective of investing within the cut-off time?
Not being able to Buy or Sell at the desired NAV (T-day) is really bad.
IMO, the cut-off times are introduced to guarantee an execution at T-day’s NAV, and remove any uncertainty associated with NAVs at which transactions get executed.
What’s the purpose of having a cut-off time, if such cut-off time is never actually implemented for determining the NAV.
If the problem is with the payment aggregator, i hope Zerodha is working on resolving this issue and not brush it off.
PS:
People say ETFs sometimes can have liquidity issues, resulting in higher impact costs.
Seems even MFs aren’t guaranteeing execution at T-day’s NAV, and such delay in allotment is equivalent to that of an impact cost or worse.
(i.e., when the next day’s NAV is higher than T-day, resulting in lesser units getting allotted)
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To the user, simply stating why the issue happened is a good first step. But thats not the solution that the user is asking for. This needs to be worked with the payment aggregator if they are the issue. The user obviously wants to ensure that he gets the same day NAV so that he doesnt incur any losses. Can I please understand what steps are being taken with the payment aggregator to solve this issue once and for all?
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This issue happened to me as well; I placed the order at 1:42 pm, but the NAV was allotted for the next day.