Mutual Fund

SEBI has made changes to the time limit for disclosing the NAV of global funds.

The Securities and Exchange Board of India (SEBI), the capital markets regulator, has announced a new time limit for mutual fund schemes to disclose their net asset values (NAV) for schemes investing overseas. The new rule is intended to address difficulties caused by differences in time zones and market hours. The outer time limit for disclosure of NAVs for all schemes has been set, but the regulator has made partial modifications to the timeline to take into account the investment objective and asset allocation of the schemes. These changes will be effective from July 1, 2023.

SEBI has set an outer time limit of 9 am on T+1 day for schemes having exposure to exchange traded commodity derivatives (ETCDs) and Fund of Funds (FoFs) schemes, while the time limit for schemes investing at least 80% of total assets in permissible overseas investments and index funds, as well as ETFs investing at least 80% of total assets in permissible overseas investments, has been changed from 11 pm on T day to 10 am on T+1 day.

For schemes that cannot disclose NAV as per these timelines due to inability in capturing same day valuation of underlying investments, the regulator has provided an option to disclose NAVs as per the disclosure made in SID along with reasons for the delayed disclosure. AMCs must ensure that NAV of schemes is disclosed based on the value of underlying securities/funds as on the T day. The time limit for all other schemes will be 11 pm on T day.

Disclaimer: The information provided in this post is based on online sources. However, the reader is strongly advised to verify the information and check for any updates or corrections by referring to the official government notification or website. The author and publisher of this post do not guarantee the accuracy, completeness, or reliability of the information provided, and shall not be held responsible for any loss or damage caused directly or indirectly by the use of such information. The reader is solely responsible for any decisions or actions taken based on the information provided in this post.

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