Uniform cut-off timings for applicability of Net Asset Value (NAV) of Mutual Fund scheme(s)/plan(s)
Summary
This SEBI circular mandates uniform cut-off timings for the applicability of Net Asset Value (NAV) in mutual fund transactions. It establishes specific time-based rules for liquid funds and other schemes, distinguishing between purchase and repurchase operations. The document also outlines compliance reporting requirements, disclosure obligations, and technical standards for time-stamping application receipts.
Text
Defines 'Act', 'Board', 'cut-off timing', 'international scheme', 'liquid fund schemes and plans', and 'regulations'. Words not defined have meanings assigned in the Act or regulations.
These Guidelines shall be applicable to all schemes and plans of mutual funds except international schemes.
These Guidelines shall not apply to transactions in mutual fund units which are undertaken on a recognised stock exchange.
Every mutual fund shall reckon the cut-off timings for its schemes and plans in compliance with these Guidelines and such cut-off timings shall be uniformly implemented for all its investors.
Every mutual fund shall ensure that each payment instrument for subscription or purchase of units is deposited by it in the bank with utmost expedition prudently utilizing the appropriate banking facility, so as to comply with sub-paragraph (1).
Any loss occasioned to any investor or to the scheme or plan on account of non-compliance with sub-paragraph (2) shall be made good by the asset management company.
Specifies NAV application for liquid fund purchases based on receipt time (upto/after 12:00 noon) and fund availability status.
Specifies NAV application for liquid fund repurchases based on receipt time (upto/after 3:00 pm).
A mutual fund shall calculate NAV for each calendar day in respect of its liquid fund schemes and their plans.
A mutual fund shall reckon only prospective NAV in accordance with this clause, in respect of all their schemes and plans other than liquid fund schemes and plans.
Specifies NAV application for purchases in other schemes based on receipt time (upto/after 3:00 pm) and cheque type (local/outstation).
Specifies NAV application for repurchases in other schemes based on receipt time (upto/after 3:00 pm).
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Source: SecMarx — Uniform cut-off timings for applicability of Net Asset Value (NAV) of Mutual Fund scheme(s)/plan(s). Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.