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    Straddles Vs Strangles

    What is a Passive ELSS?

    A Passive ELSS is a tax-saving mutual fund that follows a specific market index, such as the Nifty 50 or Sensex. Rather than being actively managed, these funds aim to mirror the index’s composition and performance. Passive ELSS funds were introduced following a directive by the Securities and Exchange Board of India (SEBI) in 2022, allowing fund houses to offer this category of ELSS as an alternative to actively managed funds. However, a fund house can offer either active ELSS or passive ELSS, but not both simultaneously.

     

    How Does Passive ELSS Work?

    Passive ELSS funds function by tracking a predefined index, ensuring that investments align with the index’s composition. The primary goal is to replicate market movements rather than outperform them.

    To better understand their functioning, consider the following:

    • Replication of Market Index – The fund manager invests in stocks constituting the chosen index, maintaining the same weightage as found in the benchmark.
    • Periodic Portfolio Rebalancing – Whenever the index undergoes changes in stock composition or weightage, the fund portfolio is adjusted accordingly.
    • Reduced Risk Exposure – Since passive ELSS funds are broadly diversified across sectors and industries, they reduce the impact of individual stock volatility.
    • Taxation on Returns – As these funds follow the ELSS framework, long-term capital gains (LTCG) above ₹1 lakh are taxed at 10%.

     

    What are the Features of Passive ELSS?

    Passive ELSS (Equity-Linked Savings Scheme) funds are designed to track a market index, offering investors a tax-efficient and lower-cost approach to equity investments. These funds come with unique characteristics that set them apart from active ELSS funds. Below are the key features that define Passive ELSS mutual funds:

    • Market Index Tracking
      Passive ELSS funds replicate the performance of a predefined market index, such as the Nifty 50 or Sensex. This means they invest in the same stocks as the index, in the same proportion, ensuring their returns closely mirror the benchmark.
    • Lower Risk Profile
      Since Passive ELSS funds track a diversified index, their risk is relatively lower than actively managed ELSS funds. The diversification across multiple sectors and industries helps mitigate the impact of poor performance by any individual stock or sector.
    • Cost-Effective Investment Option
      These funds generally have a lower expense ratio compared to active ELSS funds. As there is no frequent buying and selling of stocks, the fund management costs are reduced, allowing investors to retain a greater portion of their returns.
    • Transparent Investment Strategy
      Unlike actively managed funds, where the fund manager’s decisions impact portfolio composition, Passive ELSS funds follow a clear, rule-based approach. This transparency enables investors to understand exactly how their money is being allocated.
    • Three-Year Lock-In Period
      Similar to active ELSS funds, Passive ELSS funds have a mandatory lock-in period of three years. During this time, investors cannot withdraw their investments, encouraging a long-term approach to equity investments.
    • Tax Benefits Under Section 80C
      Passive ELSS funds offer tax benefits under Section 80C of the Income Tax Act. Investors can claim deductions of up to ₹1.5 lakh per financial year, making them a tax-efficient investment option.

     

    Types of Passive ELSS

    Investors looking to diversify their portfolio while benefiting from tax savings have different types of Passive ELSS funds to choose from. These variations cater to different risk appetites and investment strategies. Below are the main types of Passive ELSS funds:

    • Index-Based Passive ELSS
      These funds replicate the performance of a broad market index, such as the Nifty 50 or Sensex. By investing in top companies within the index, they provide stable returns over time with minimal active intervention from the fund manager.
    • Sectoral and Thematic Passive ELSS
      These funds track indices focused on specific sectors or themes, such as IT, banking, or pharmaceuticals. While they offer exposure to high-growth industries, they also carry higher risks due to their concentration in a particular sector.
    • Factor-Based Passive ELSS
      Also known as smart beta funds, these Passive ELSS schemes track indices that follow specific investment factors, such as low volatility, high dividend yield, or momentum. These funds aim to enhance returns by tilting exposure toward stocks with favourable characteristics.
    • Multi-Cap Passive ELSS
      These funds invest across large-cap, mid-cap, and small-cap stocks in the same proportion as a multi-cap index. This diversified approach balances risk and return by including companies of various market capitalisations.
    • Equal-Weighted Passive ELSS
      Unlike traditional index funds that allocate higher weights to larger companies, equal-weighted Passive ELSS funds distribute investments equally across all stocks in the index. This reduces the impact of large-cap dominance and provides exposure to mid- and small-cap stocks.

     

    Who Should Invest in Passive ELSS?

    Passive ELSS funds can be a suitable investment option for individuals looking for a tax-saving investment with lower risk. These funds cater to investors with specific financial objectives and investment styles. Here are the key groups who may find passive ELSS funds beneficial:

    • Long-term investors – Passive ELSS funds are designed for those prioritising long-term wealth creation. By tracking a broad market index, these funds aim to provide consistent returns over time, making them ideal for investors with a long-term perspective.
    • Hands-off investors – Since passive ELSS funds follow a predefined market index, they require minimal active management. This makes them suitable for investors who prefer a low-maintenance approach to investing.
    • Cost-conscious investors – Passive ELSS funds typically have lower expense ratios compared to actively managed ELSS funds. This allows investors to retain a larger share of their returns, making them a cost-effective option.
    • Investors valuing transparency – The predefined investment strategy of passive ELSS funds provides a clear understanding of their composition and performance. Investors who appreciate transparency and predictability may find these funds appealing.
    • Tax-saving investors – As passive ELSS funds qualify for tax deductions under Section 80C of the Income Tax Act, they serve as a valuable option for individuals looking to optimise their tax planning while building wealth.

     

    How to Invest in Passive ELSS?

    Investing in passive ELSS funds is a straightforward process that involves selecting a fund, assessing its suitability, and making an informed investment decision. Follow these steps to invest in passive ELSS funds efficiently:

    Step 1: Open an Investment Account

    To invest in passive ELSS funds, you must have an investment account with a registered mutual fund platform. If you do not have an account, you can open one by providing the required documents such as PAN, Aadhaar, and bank details.

    Step 2: Select a Suitable Passive ELSS Fund

    Before investing, research different passive ELSS funds to determine which one aligns with your financial goals and risk profile. Consider the following factors:

    • The fund’s historical performance and market index it tracks
    • Tax implications and expected returns
    • The sectors and companies included in the index
    • The expense ratio and ratings of the fund


    Step 3: Decide on an Investment Mode

    You can invest in passive ELSS funds through:

    • Lump sum investment – A one-time investment for those who have surplus funds available.
    • Systematic Investment Plan (SIP) – Regular contributions at fixed intervals, allowing for disciplined investing and reducing exposure to market fluctuations.


    Step 4: Complete the Investment Transaction

    Once you have finalised your preferred passive ELSS fund and investment mode:

    • Enter the investment amount
    • Select your preferred payment mode
    • Confirm and complete the transaction


    Step 5: Monitor and Manage Your Investment

    While passive ELSS funds require minimal active management, it is advisable to periodically review your investment performance. Keep track of:

    • Market trends affecting the index
    • Tax implications on capital gains
    • Any changes in the fund’s composition

     

    Advantages of Investing in Passive ELSS

    Investing in Passive ELSS (Equity-Linked Savings Scheme) funds presents several benefits, making them an attractive option for investors seeking tax efficiency and long-term financial growth. Below are the key advantages of opting for Passive ELSS funds:

    • Tax-Saving Benefit
      Passive ELSS funds offer tax deductions under Section 80C of the Income Tax Act. Investors can claim deductions of up to ₹1.5 lakh per financial year, reducing their taxable income and saving on taxes. This makes Passive ELSS a preferred choice for those looking to combine wealth creation with tax efficiency.
    • Market-Linked Growth
      Since Passive ELSS funds track a specific benchmark index, they provide exposure to the top-performing companies in the stock market. This enables investors to benefit from overall market growth while minimising the risks associated with active stock selection.
    • Lower Expense Ratio
      Compared to actively managed ELSS funds, passive ELSS funds typically have a lower expense ratio. Since these funds simply replicate the performance of an index rather than being actively managed, the costs associated with research, fund management, and transactions are significantly reduced. This allows investors to retain a greater portion of their returns.
    • Diversification with Reduced Risk
      By mirroring a broad-based market index, Passive ELSS funds automatically diversify investments across multiple sectors and industries. This diversification helps mitigate the risks associated with individual stocks and sectors, making them a relatively safer option for investors looking for stable returns.
    • Transparency and Predictability
      Passive ELSS funds follow a predefined strategy by tracking a market index, making them highly transparent. Investors have a clear understanding of where their money is being invested, which provides predictability regarding the fund’s performance. Unlike actively managed funds, where strategies can change based on the fund manager’s discretion, passive funds remain aligned with the index they track.
    • No Bias in Stock Selection
      Since Passive ELSS funds follow a structured approach by investing in the stocks listed in an index, there is no risk of fund manager bias or misjudgment. This eliminates the possibility of human error in stock selection, ensuring a more systematic investment approach.
    • Lock-In Period Encouraging Long-Term Investment
      Like all ELSS funds, Passive ELSS funds come with a mandatory lock-in period of three years. This encourages a disciplined investment approach, allowing investors to stay invested for the long term without frequent withdrawals. Long-term investments in equities tend to yield better returns due to the power of compounding.

     

    Risks Involved in Passive ELSS

    While Passive ELSS funds provide a range of benefits, they also come with inherent risks. It is essential for investors to understand these risks before committing to an investment. Here are the key risks associated with Passive ELSS funds:

    • Market Risk: As Passive ELSS funds are linked to the stock market, their performance depends on the overall market movements. If the market experiences a downturn, the fund value may decline accordingly.
    • Limited Flexibility: Since these funds replicate a benchmark index, fund managers do not have the flexibility to actively manage the portfolio. This means that even if certain stocks in the index underperform, the fund will still hold them, potentially impacting returns.
    • Lock-In Period: Like all ELSS funds, Passive ELSS funds come with a three-year lock-in period. During this time, investors cannot withdraw their funds, which may be a concern for those needing liquidity.
    • Absence of Active Stock Selection: Unlike actively managed ELSS funds where fund managers select stocks based on research and potential growth, Passive ELSS funds strictly follow the index. This means they might miss opportunities to outperform the market through strategic stock selection.
    • Tracking Error: Although Passive ELSS funds aim to replicate the benchmark index, slight variations in actual performance compared to the index can occur due to tracking errors. These errors may arise due to fund expenses, rebalancing, or timing differences in executing trades.

     

    Factors to Consider Before Investing in Passive ELSS

    Before investing in Passive ELSS mutual funds, it is crucial to evaluate several key factors to ensure they align with your financial goals and risk tolerance. Here are the primary aspects to consider:

    • Expense Ratio
      Passive ELSS funds generally have lower expense ratios compared to actively managed funds. However, it is still essential to compare different funds to ensure you are selecting one with competitive fees, as lower expenses contribute to better long-term returns.
    • Fund Manager’s Track Record
      Although passive funds track an index, the fund manager plays a crucial role in ensuring the fund remains aligned with its benchmark. Assessing the fund manager’s expertise and history in managing passive funds can provide confidence in their ability to maintain efficient tracking.
    • Investment Tenure
      Passive ELSS funds have a mandatory lock-in period of three years, which means investors cannot withdraw their funds before this duration. While this is the shortest lock-in period among tax-saving instruments, investors should align their investment horizon accordingly.
    • Suitability for Your Investment Goals
      Passive ELSS funds may not be suitable for all investors. If you prefer market-linked returns without active fund management, they can be a viable option. However, if you seek personalised fund strategies with an active approach to outperform market indices, an actively managed ELSS fund might be more appropriate.

    Taxability of Passive ELSS

    Understanding the tax implications of Passive ELSS funds is essential to make informed investment decisions. These funds offer tax-saving benefits, but they are also subject to taxation on capital gains.

    • Lock-In Period and Tax Benefits
      Investments in Passive ELSS funds qualify for deductions under Section 80C of the Income Tax Act, allowing investors to claim a tax benefit of up to ₹1.5 lakh per financial year. However, since these funds have a three-year lock-in period, no withdrawals can be made during this time.
    • Long-Term Capital Gains (LTCG) Tax
      Since Passive ELSS funds have a minimum holding period of three years, there are no short-term capital gains (STCG). Gains exceeding ₹1 lakh in a financial year are taxed at 10% under LTCG tax rules, without the benefit of indexation. Gains up to ₹1 lakh remain tax-free, making these funds an efficient tax-saving investment.

     

    Popular Passive ELSS in India

    Passive ELSS mutual funds are gaining popularity among investors seeking tax-saving benefits and market-linked returns with minimal expense ratios. These funds track an index and provide diversification across various market segments. Below is a list of the top three passive ELSS mutual funds currently available in India:

    Top 3 Passive ELSS Mutual Funds to Invest In

    Fund Name

    AUM (in ₹ crore)

    CAGR 1Y (%)

    Expense Ratio (%)

    Lifetime CAGR (%)

    Zerodha ELSS Tax Saver Nifty LargeMidcap 250 Index Fund

    145.11

    16.50

    0.27

    27.08

    360 ONE ELSS Tax Saver Nifty 50 Index Fund

    78.71

    11.10

    0.27

    14.82

    Navi ELSS Tax Saver Nifty 50 Index Fund

    73.32

    10.54

    0.10

    21.23

    Note: The above-mentioned Passive ELSS Funds list is for informational purposes only and is not a recommendation. The funds are sorted as per the 1-Year CAGR as of January 9, 2025, which is subject to change frequently. Investors should check real-time data before making investment decisions.

    Zerodha ELSS Tax Saver Nifty LargeMidcap 250 Index Fund

    This fund offers a unique blend of stability and growth by investing across large- and mid-cap companies. With an expense ratio of 0.27%, it is competitively priced, while its standard deviation of 15.74% reflects slightly higher volatility. A Sharpe ratio of 0.89 highlights strong risk-adjusted returns compared to peers.

    360 ONE ELSS Tax Saver Nifty 50 Index Fund

    Designed for investors looking to save on taxes while participating in market growth, this fund has a low expense ratio of 0.27%, making it cost-efficient. Its standard deviation of 14.13% indicates moderate volatility. Though the Sharpe ratio of 0.55 is below the category average, its focus on Nifty 50 companies ensures reliable long-term growth.

    Navi ELSS Tax Saver Nifty 50 Index Fund

    A highly economical option with an expense ratio of just 0.10%, this fund offers one of the lowest costs in its category. Its standard deviation of 14.19% reflects controlled volatility, and a Sharpe ratio of 0.55 ensures balanced risk-adjusted performance. Investing in Nifty 50 companies, it provides stable returns and diversification benefits.

    Investors should carefully assess their financial goals, risk appetite, and investment horizon before choosing a Passive ELSS mutual fund. By considering factors such as expense ratio, volatility, and long-term performance, they can make informed decisions that align with their tax-saving and wealth-building objectives.

    Additional Read: What is Nifty 50 Index Fund?

     

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    Bajaj Financial Securities Limited is not a registered broker-dealer under the U.S. Securities Exchange Act of 1934, as amended (the"1934 act") and under applicable state laws in the United States. In addition, Bajaj Financial Securities Limited is not a registered investment adviser under the U.S. Investment Advisers Act of 1940, as amended (the "Advisers Act" and together with the 1934 Act, the "Acts), and under applicable state laws in the United States. Accordingly, in the absence of specific exemption under the Acts, any brokerage and investment services provided by Bajaj Financial Securities Limited, including the products and services described herein are not available to or intended for U.S. persons. This email message does not constitute an offer or invitation to purchase or subscribe for any securities or solicitation of any investments or investment services and/or shall not be considered as an advertisement tool. "U.S. Persons" are generally defined as a natural person, residing in the United States or any entity organized or incorporated under the laws of the United States. US Citizens living abroad may also be deemed "US Persons" under certain rules.  

    ADDITIONAL DISCLAIMER FOR CANADIAN PERSONS

    Bajaj Financial Securities Limited is not a registered adviser or dealer under applicable Canadian securities laws nor has it obtained an exemption from the adviser and/or dealer registration requirements under such law. Accordingly, any brokerage and investment services provided by Bajaj Financial Securities Limited, including the products and services described herein are not available to or intended for Canadian persons.  

    This mailer and its respective contents do not constitute an offer or invitation to purchase or subscribe for any securities or solicitation of any investments or investment services.  

    DISCLAIMER FOR REPORT DISCLOSURES UNDER THE PROVISIONS OF SEBI (RESEARCH ANALYSTS) REGULATIONS 2014 (REGULATIONS)

    Bajaj Financial Securities Limited ("Bajaj Broking" or "Research Entity") is regulated by the Securities and Exchange Board of India ("SEBI") and is licensed to carry on the business of broking, depository services and related activities.  

    This Report has been prepared by Bajaj Financial Securities Limited in the capacity of a Research Analyst having SEBI Registration No. INH000010043 and distributed as per SEBI (Research Analysts) Regulations 2014. This report does not constitute an offer or solicitation for the purchase or sale of any financial instrument or as an official confirmation of any transaction. The information contained herein is from publicly available data or other sources believed to be reliable. This report is provided for assistance only and is not intended to be and must not alone be taken as the basis for an investment decision. The user assumes the entire risk of any use made of this information. Each recipient of this report should make such investigation as it deems necessary to arrive at an independent evaluation of an investment in the securities of companies referred to in this document (including the merits and risks involved), and should consult his own advisors to determine the merits and risks of such investment. The investment discussed or views expressed may not be suitable for all investors.  

    This information is strictly confidential and is being furnished to you solely for your information. This information should not be reproduced or redistributed or passed on directly or indirectly in any form to any other person or published, copied, in whole or in part, for any purpose. This report is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use would be contrary to law, regulation or which would subject Bajaj Financial Securities Limited and associates / group companies to any registration or licensing requirements within such jurisdiction. The distribution of this report in certain jurisdictions may be restricted by law, and persons in whose possession this report comes, should observe, any such restrictions. The information given in this report is as of the date of this report and there can be no assurance that future results or events will be consistent with this information. This information is subject to change without any prior notice. Bajaj Financial Securities Limited reserves the right to make modifications and alterations to this statement as may be required from time to time. Bajaj Financial Securities Limited or any of its associates / group companies shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. Bajaj Financial Securities Limited is committed to providing independent and transparent recommendation to its clients. Neither Bajaj Financial Securities Limited nor any of its associates, group companies, directors, employees, agents or representatives shall be liable for any damages whether direct, indirect, special or consequential including loss of revenue or lost profits that may arise from or in connection with the use of the information. Our proprietary trading and investment businesses may make investment decisions that are inconsistent with the recommendations expressed herein. Past performance is not necessarily a guide to future performance .The disclosures of interest statements incorporated in this report are provided solely to enhance the transparency and should not be treated as endorsement of the views expressed in the report. The information provided in these reports remains, unless otherwise stated, the copyright of Bajaj Financial Securities Limited. All layout, design, original artwork, concepts and other Intellectual Properties, remains the property and copyright of Bajaj Financial Securities Limited and may not be used in any form or for any purpose whatsoever by any party without the express written permission of the copyright holders.  

    We offer our research services to clients as well as our prospects. Though this report is disseminated to all the customers simultaneously, not all customers may receive this report at the same time. We will not treat recipients as customers by virtue of their receiving this report.  

    Bajaj Financial Securities Limited and its associates, officer, directors, and employees, research analyst (including relatives) worldwide may: (a) from time to time, have long or short positions in, and buy or sell the securities thereof, of company(ies), mentioned herein or (b) be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the subject company/company(ies) discussed herein or act as advisor or lender/borrower to such company(ies) or have other potential/material conflict of interest with respect to any recommendation and related information and opinions at the time of publication of research report or at the time of public appearance. Bajaj Financial Securities Limited may have proprietary long/short position in the above-mentioned scrip(s) and therefore should be considered as interested. The views provided herein are general in nature and do not consider risk appetite or investment objective of any particular investor; readers are requested to take independent professional advice before investing. This should not be construed as invitation or solicitation to do business with Bajaj Financial Securities Limited.  

    Bajaj Financial Securities Limited or its associates may have received compensation from the subject company in the past 12 months. Bajaj Financial Securities Limited or its associates may have managed or co-managed public offering of securities for the subject company in the past 12 months. Bajaj Financial Securities Limited or its associates may have received compensation for investment banking or merchant banking or brokerage services from the subject company in the past 12 months. Bajaj Financial Securities Limited or its associates may have received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past 12 months. Bajaj Financial Securities Limited or its associates have not received any compensation or other benefits from the Subject Company or third party in connection with the research report. Research analyst or his/her relative or Bajaj Financial Securities Limited’s associates may have financial interest in the subject company. Bajaj Financial Securities Limited, its associates, research analyst and his/her relative may have other potential/material conflict of interest with respect to any recommendation and related information and opinions at the time of publication of research report or at the time of public appearance.  

    Research analyst has served as an officer, director or employee of subject Company: No  

    Bajaj Financial Securities Limited has financial interest in the subject companies: No  

    Bajaj Financial Securities Limited’s Associates may have actual/beneficial ownership of 1% or more securities of the subject company at the end of the month immediately preceding the date of publication of research report.  

    Research analyst or his/her relative has actual/beneficial ownership of 1% or more securities of the subject company at the end of the month immediately preceding the date of publication of research report: No  

    Bajaj Financial Securities Limited has actual/beneficial ownership of 1% or more securities of the subject company at the end of the month immediately preceding the date of publication of research report: No  

    Subject company may have been client during twelve months preceding the date of distribution of the research report.  

    There were no instances of non-compliance by Bajaj Financial Securities Limited on any matter related to the capital markets, resulting in significant and material disciplinary action during the last three years. A graph of daily closing prices of the securities is also available at NSE

    ANALYST CERTIFICATION

    The analyst for this report certifies that all of the views expressed in this report accurately reflect his or her personal views about the subject company or companies and its or their securities, and no part of his or her compensation was, is or will be, directly or indirectly related to specific recommendations or views expressed in this report.  

    RISK DISCLOSURE ON DERIVATIVES

    • 9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses.
    • On an average, loss makers registered net trading loss close to ₹ 50,000.
    • Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs.
    • Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost.

    SEBI study dated January 25, 2023 on “Analysis of Profit and Loss of Individual Traders dealing in equity Futures and Options (F&O) Segment”, wherein Aggregate Level findings are based on annual Profit/Loss incurred by individual traders in equity F&O during FY 2021-22.

    BROKERAGE DISCLAIMER

    All leveraged intraday positions will be squared off on the same day. There is no restriction on the withdrawal of the unutilised margin amount. Brokerage will not exceed the SEBI prescribed limit. Visit : Pricing

    MTF 

    As subject to the provisions of SEBI Circular CIR/MRD/DP/54/2017 dated June 13, 2017, and the terms and conditions mentioned in the lights and obligations statement issued by the TM (if applicable).  

    US INVESTING

    International investment is not supervised by any regulatory body in India. Thus, any claim or dispute relating to such investment or enforcement of any agreement/contract /claim will not be under laws and regulations of the recognized stock exchanges and investor protection under Indian Securities Law. The account opening process will be carried out on Vested platform and Bajaj Financial Securities Limited will not have any role in it.

    IPO 

    This should not be construed as soliciting investment. Investors’ discretion is required. Kindly consult your financial expert before investing. No need to issue cheques by investors while subscribing to IPO. Investments in securities markets are subject to market risks, read all the related documents carefully before investing.  

    SCREENERS 

    Screeners is not Exchange-approved products and any disputes related to the same will not be dealt on the Exchange platform. 

    SECURITIES 

    Securities quoted are exemplary and not recommendatory. 

    IPV 

    Account would be open after all procedure relating to IPV and client due diligence is completed. 

    IMAGES 

    The images used are only for representation purpose. Proper due diligence has been done for the images and the image is not of any artist. The same is captured from royalty free sites.

    THIRD PARTY PRODUCT DISCLAIMER

    Bajaj Financial Securities Limited is a distributor for Non-Broking Products/Services such as Mutual Funds, Mutual Funds SIP, IPO, Bonds, Insurance, PMS, Global Investing, any other third-party products/services. These are not Exchange Traded Products, and we are only acting as distributors. All disputes with respect to the distribution activity, would not have access to SCORES/ODR, Exchange investor redressal forum or Arbitration mechanism. Please refer to the detailed disclaimer for Third-Party Products.

    DISCLOSURE TO CLIENTS REGARDING PAYOUT OF FUNDS

    As per SEBI circular no. SEBI/HO/MIRSD/MIRSD-PoD-1/P/CIR/2023/84 dated June 08, 2023, Stockbrokers are required to upstream the entire client funds lying with them to the Clearing Corporation. Based on client’s request the funds’ release request must be placed with the Clearing Corporation. Based on the internal process and cut-off timelines of the Clearing Corporation the funds will be released to the Stock Broker. In view of this new process, as specified by the regulatory and the cut-off time of Clearing Corporation/Banks processing the funds, Bajaj Financial Securities Limited cannot commit the exact time for releasing funds payout to its client. Clients are requested to note that, Bajaj Financial Securities Limited will not be responsible for any inconvenience caused to clients due to delay in release of funds payout, including fines, delayed charges, defaults, etc.