Intra-day Net Asset Value (NAV) for transactions in units of Exchange Traded Funds directly with Asset Management Companies
Summary
SEBI clarifies that intra-day Net Asset Value (NAV) shall apply to transactions in Exchange Traded Fund units conducted directly with Asset Management Companies. This change replaces the previous requirement of using the closing NAV for such specific transactions involving Authorized Participants or large investors. The directive mandates appropriate disclosures in scheme documentation and is issued under Section 11(1) of the SEBI Act, 1992.
Text
for the above mentioned transactions, intra-day NAV, based on the executed price at which the securities representing the underlying index or underlying commodity(ies) are purchased / sold, shall be applicable.
Appropriate disclosure in this regard shall be provided in the Scheme Information Document, Key Information Memorandum and Common application form.
This circular is issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992, read with the provisions of Regulation 77 of SEBI (Mutual Funds) Regulations, 1996, to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.
Source: SecMarx — Intra-day Net Asset Value (NAV) for transactions in units of Exchange Traded Funds directly with Asset Management Companies. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.