Mutual funds often face intraday timing mismatches because redemption payouts are processed in the morning of T+1 day, while maturity proceeds from TREPS and reverse repo are received in the evening of the same day. MFs have been allowed to enter into intraday borrowing arrangements with financial institutions. The borrowing amount cannot exceed guaranteed receivables due on the same day from specified sources such as TREPS, reverse repo, or government securities transactions. The cost or losses arising from intraday borrowing must be borne by the asset management company. The borrowing conditions for equity-oriented index funds and ETFs participating in the closing auction session, has also peen specified.