Applicability of Net Asset Value (NAV) for Income/Debt oriented Mutual Fund scheme(s)/plan(s) (other than liquid fund schemes)
Summary
This circular modifies guidelines for the applicability of Net Asset Value (NAV) in Income and Debt oriented mutual fund schemes. It mandates that for large applications of Rs. 1 crore or more, the closing NAV of the day funds are available for utilization applies instead of the application date NAV. This change aims to harmonize NAV applicability with the actual realization of money.
Text
it has been decided to modify the guidelines specified in the aforementioned circular in case of large applications for purchase of Income/ Debt oriented schemes other than liquid fund schemes by inserting a clause 6 (2)(A)
In respect of purchase of units in Income/ Debt oriented schemes (other than liquid fund schemes and plans) with amount equal to or more than Rs. 1 crore, irrespective of the time of receipt of application, the closing NAV of the day on which the funds are available for utilisation shall be applicable.
This circular effective from October 30, 2008 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 — Applicability of Net Asset Value (NAV) for Income/Debt oriented Mutual Fund scheme(s)/plan(s) (other than liquid fund schemes). Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.