Muhurat Trading 2026: ETF Transactions and Mutual Fund NAV Processing Follow Different Rules

Key Takeaways

• NSE and BSE scheduled a special Muhurat Trading session on Sunday, 8 November 2026, from 2:20 PM to 3:30 PM IST.
• Exchange-traded funds, including equity, gold and silver ETFs, could be bought and sold during the special trading session.
• Ordinary mutual fund and index fund transactions were subject to business-day processing rather than intraday exchange-traded prices.

ETF Trading Available During Special Diwali Session

The Indian stock exchanges scheduled their annual Muhurat Trading session for Sunday, 8 November 2026, marking the beginning of Samvat 2083.

The special session was scheduled to run from 2:20 PM to 3:30 PM IST, following a pre-open session between 2:05 PM and 2:20 PM.

Although the session provided a trading window for exchange-listed securities, the transaction process for conventional mutual fund schemes remained different.

Investors could trade eligible exchange-traded funds during the session, while purchases and redemptions in ordinary mutual fund schemes were governed by the applicable non-business-day processing arrangements.

Equity, Gold and Silver ETFs Could Be Traded

Exchange-traded funds are listed securities that trade through stock exchanges.

Eligible equity ETFs, gold ETFs and silver ETFs could therefore be bought and sold through brokers during the Muhurat session.

Their executed transaction prices depended on the prevailing exchange quotations.

Unlike conventional mutual fund purchases, an ETF transaction takes place at a market price rather than directly at the scheme's applicable end-of-day NAV.

An ETF's market price may differ from its underlying net asset value because of trading activity, liquidity and the spread between buying and selling quotations.

Mutual Fund Transactions Follow Regular NAV Rules

Conventional mutual funds, including open-ended index funds, do not trade through the exchange order book in the same way as ETFs.

Investors may be able to submit mutual fund orders through certain platforms on Sundays or market holidays.

However, submitting an order does not mean the transaction is processed immediately.

Under the arrangements described ahead of the session, eligible orders received on Sunday, 8 November, would generally move to processing on Monday, 9 November, subject to the AMC's acceptance rules, applicable cut-off timings and receipt of funds.

The applicable NAV is determined under the scheme's transaction rules rather than by the price movements during the special Muhurat session.

Settlement and Allotment Timelines

ETF transactions during the special session were expected to follow the applicable exchange settlement cycle, with T+1 settlement indicated for Monday, 9 November.

Conventional mutual fund units follow a separate allotment process.

Allotment and credit timings depend on the scheme category, transaction acceptance, fund realisation and operational procedures of the relevant AMC or transaction platform.

Investors placing SIP or lump-sum orders on a non-business day may therefore see their transactions processed on the next eligible business day.

Why ETF and Mutual Fund Pricing Differ

The distinction arises from how the two investment structures are transacted.

An ETF investor purchases or sells listed units through an exchange at an available market price.

A conventional mutual fund investor transacts directly or through a recognised platform at the NAV applicable under the mutual fund's processing rules.

The 8 November session illustrated this operational difference, with the exchange trading window available for eligible ETFs but no equivalent intraday market for ordinary mutual fund units.

The distinction is particularly relevant when exchange sessions take place on holidays or outside the normal trading calendar.