Gazette Notification dated 23.12.2001 and publication of NAV of close ended schemes on Wednesday
Summary
The document transmits a SEBI Gazette Notification dated January 23, 2001, regarding the valuation and provisioning of non-performing assets for mutual funds. It also mandates that close-ended schemes declaring weekly Net Asset Values must publish them on Wednesdays to ensure uniformity. The attached notification amends the SEBI (Mutual Funds) Regulations, 1996, specifically altering thresholds for illiquid securities and defining non-performing investments.
Text
all mutual funds who declare the NAVs of their close ended schemes on weekly basis, shall publish the NAVs on Wednesday
for the word, "sixty", the word, "thirty" shall be substituted
Thinly traded securities as defined in the guidelines shall be valued in the manner as specified in the guidelines issued by the Board
the aggregate value of illiquid securities as defined in the guidelines shall not exceed 15% of the total assets of the scheme
any illiquid securities held above 15% of the total assets shall be valued in the manner as specified in the guidelines issued by the Board
Where income receivable on investments has accrued but has not been received for the period specified in the guidelines issued by the Board, provision shall be made by debiting to the revenue account the income so accrued
The Balance sheet shall disclose under each type of investment(s) the aggregate carrying value and market value of non performing investments
An investment shall be regarded as non –performing if it has provided no returns in the form of dividend or interest for a period specified in the guidelines issued by the Board
Source: SecMarx — Gazette Notification dated 23.12.2001 and publication of NAV of close ended schemes on Wednesday. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.