Under SEBI regulations, which schemes are permitted to offer the Instant Access Facility (IAF), and what is the maximum daily monetary limit for an investor?

[ A ]Offered only in Liquid and Overnight schemes, capped at Rs. 50,000 or 90% of the latest holding value (whichever is lower) per day per scheme per investor.[ CORRECT ]

[ B ]Offered across all small-cap equity schemes up to a daily limit of Rs. 1 crore per investor.

[ C ]Offered in close-ended infrastructure debt funds up to 100% of the original NFO subscription amount.

[ D ]Offered only in ELSS schemes during their mandatory 3-year statutory lock-in period.

Takeaway

Option A is correct: Offered only in Liquid and Overnight schemes, capped at Rs. 50,000 or 90% of the latest holding value (whichever is lower) per day per scheme per investor.

Derivation

SEBI allows AMCs to offer Instant Access Facility (IAF) exclusively in Liquid and Overnight mutual fund schemes to provide immediate liquidity. Under IAF, redemption proceeds are credited to the investor's bank account on the same day via IMPS/UPI. The monetary ceiling under IAF is strictly capped at Rs. 50,000 or 90% of the latest value of the investment in the scheme, whichever is lower, per day per scheme per investor. This question tests IAF operating parameters. A common mistake is believing IAF is available for equity or locked-in ELSS funds.

Why the others fail

B — Offered across all small-cap equity schemes up to a daily limit of Rs. 1 crore per investor.

IAF is prohibited for equity schemes due to settlement and liquidity constraints; it is restricted to Liquid/Overnight funds up to Rs. 50,000.

C — Offered in close-ended infrastructure debt funds up to 100% of the original NFO subscription amount.

Close-ended funds have fixed tenures and cannot offer intraday instant redemption access facilities.

D — Offered only in ELSS schemes during their mandatory 3-year statutory lock-in period.

ELSS units are subject to a statutory 3-year lock-in and can never be redeemed prematurely via Instant Access Facilities.