Regulation 49 - Pricing of Units - Securities and Exchange Board of India (Mutual Funds) Regulations, 1996

Pricing of Units 49. (1) The price at which the units may be subscribed or sold and the price at which such units may at any time be repurchased by the mutual fund shall be made available to the investors 1 [in the manner specified by the Board]. (2) 2 [The 11 [ asset management company ] shall provide the methodology of calculating the sale and repurchase price of units in the manner specified by the Board.] 9 [ (3) While determining the price of the units, the mutual fund shall ensure that the repurchase price of an open ended scheme is not lower than 95 per cent of the Net Asset Value. ] 10 [ **** ] (4) The price of units shall be determined with reference to the last determined Net Asset Value as mentioned in sub-regulation (3) unless,- (a) the scheme announces the Net Asset Value on a daily basis; and 8 [(b) the sale price is determined with or without a fixed premium added to the future net asset value which is declared in advance.] ************** NOTES:- 1 Inserted ibid. 2 Substituted by the SEBI (Mutual Funds) (Second Amendment) Regulations, 2018, w.e.f. 30.5.2018. Prior to the substitution, sub-regulation (2) read as follows: (2) The mutual fund, in case of open-ended scheme, shall at least once a week publish in a daily newspaper of all India circulation, the sale and repurchase price of units. 3 Substituted by the SEBI (Mutual Funds) (Amendment) Regulations, 2009, w.e.f. 8-4-2009. Prior to its substitution, proviso read as under; Provided that the repurchase price of the units of a close ended scheme shall not be lower than 95 per cent of the Net Asset Value: 4 Omitted by the SEBI (Mutual Funds) (Amendment) Regulations, 2008, w.e.f. 16-4-2008. Prior to this, proviso read as under; Provided further that no entry load shall be charged by any close-ended scheme after commencement of the Securities and Exchange Board of India (Mutual Funds) (Second Amendment) Regulations, 2006. [*Inserted by the SEBI (Mutual Funds) (Second Amendment) Regulations, 2006, w.e.f. 22-5-2006] 5 Inserted by the SEBI (Mutual Funds) (Second Amendment) Regulations, 2006, w.e.f. 22-5-2006. 6 Inserted by the SEBI (Mutual Funds) (Amendment) Regulations, 2009, w.e.f. 8-4-2009. 7 Substituted by the SEBI (Mutual Funds) (Amendment) Regulations, 2008, w.e.f. 16-4-2008. Prior to its substitution, sub regulation (3B) read as under; (3B) The conditions referred to in sub-regulation (3A) are the following : (a) the scheme is launched after commencement of the Securities and Exchange Board of India (Mutual Funds) (Second Amendment) Regulations, 2006; and (b) initial issue expenses in respect of the scheme have been charged or are proposed to be charged to the mutual fund, as per clause (a) of sub-regulation (4) of regulation 52. [*Inserted by the SEBI (Mutual Funds) (Second Amendment) Regulations, 2006, w.e.f. 22-5-2006.] 8 Substituted by the SEBI (Mutual Funds) (Amendment) Regulations, 1998, w.e.f. 12-1-1998 for, the sale price is determined by adding to the future Net Asset Value a fixed premium which is declared in advance. 9. Substituted vide Notification No. SEBI/LAD-NRO/GN/2021/08 dated 04-02-2021 w.e.f. 30th day from the date of their publication in the Official Gazette, that is 04-02-2021 before it was read as (3) While determining the prices of the units, the mutual fund shall ensure that the repurchase price is not lower than 93 per cent of the Net Asset Value and the sale price is not higher than 107 per cent of the Net Asset Value: 3 [Provided that the repurchase price of the units of close ended scheme launched prior to the commencement of the Securities and Exchange Board of India (Mutual Funds) (Amendment) Regulations, 2009 shall not be lower than ninety five per cent of the Net Asset Value:] Provided further that the difference between the repurchase price and the sale price of the unit shall not exceed 7 per cent calculated on the sale price: 10. Omitted vide Notification No. SEBI/LAD-NRO/GN/2021/08 dated 04-02-2021 w.e.f. 30th day from the date of their publication in the Official Gazette, that is 04-02-2021 before it was read as 5 [(3A) Where a mutual fund repurchases units in a close ended scheme 6 [launched prior to the commencement of the Securities and Exchange Board of India (Mutual Funds) (Amendment) Regulations, 2009] which fulfils the conditions mentioned in sub-regulation (3B), it shall deduct an amount representing proportionate initial issue expenses or part thereof remaining unamortized, from the repurchase proceeds. Explanation: The term proportionate initial issue expenses or part thereof remaining unamortised refers to such proportion of the expenses of the scheme as are attributable to the units being repurchased. 7 [(3B) The conditions referred to in sub-regulation (3A) are the following: (a) the scheme is launched after the commencement of the Securities and Exchange Board of India (Mutual Funds)(Second Amendment) Regulations, 2006 and prior to commencement of the Securities and Exchange Board of India (Mutual Funds) (Amendment) Regulations, 2008; (b) initial issue expenses in respect of the scheme are accounted in the books of accounts of the scheme in accordance with Tenth Schedule.] (3C) The amount recovered under sub-regulation (3A) shall be credited to the unamortized initial issue expenses of the scheme.] 4 [***] 11. Substituted vide Notification No. SEBI/LAD-NRO/GN/2023/134 dated 26-06-2023 w.e.f. 01-01-2024 before it was read as, mutual fund