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TMI BlogUniform cut-off timings for applicability of Net Asset Value (NAV) of Mutual Fund scheme(s)/plan(s)X X X X Extracts X X X X X X X X Extracts X X X X ..... e being issued: 2. Definitions (1) In these Guidelines, unless the context otherwise required: a. 'Act' means the Securities and Exchange Board of India Act, 1992; b. 'Board' means the Securities and Exchange Board of India; c. 'cut-off timing', in relation to an investor making an application to a mutual fund for purchase or sale of units, shall mean the outer limits of timings within a particular day which are relevant for determination of the NAV that is to be applied for his transaction; d. 'international scheme' means a scheme of a mutual fund which has substantial investments in foreign securities that are valued as per time zones other than Indian standard time zone; e. 'liquid fund schemes and plans' shall mean the sche ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... heir plans, and the following NAVs shall be applied for such purchase: a. where the application is received upto 12.00 noon on a day and funds are available for utilization on the same day - the closing NAV of the day immediately preceding the day of receipt of application; b. where the application is received after 12.00 noon on a day and funds are available for utilization on the same day - the closing NAV of the day immediately preceding the next business day ; and c. irrespective of the time of receipt of application, where the funds are not available for utilization on the day of the application - the closing NAV of the day immediately preceding the day on which the funds are available for utilization. (2) The following cut-o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e or demand draft which is not payable on par at the place where it is received - closing NAV of day on which the cheque or demand draft is credited. (3) The following cut-off timings shall be observed by a mutual fund in respect of repurchase of units in its other schemes and their plans, and the following NAVs shall be applied for such repurchase: a. where the application received upto 3.00 pm - closing NAV of the day of receipt of application; and b. an application received after 3.00 pm - closing NAV of the next business day. 7. Switch and sweep transactions 1) Clauses 5 and 6 shall apply to 'switch in' transactions as if they were purchase transactions and to 'switch out' transactions as if they were repurchase transactions. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... EBI/ IMD/CIR No. 10/77780/ 2006 dated September 28, 2006 stand withdrawn. 11. These guidelines effective from October 16, 2006 are 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. Yours faithfully, R. K. Nair Encl: a/a Schedule I Liquid fund schemes and plans [clause 2(1)(e)] 1. 'Liquid fund schemes and plans' are such schemes and plans of mutual funds that have the following characteristics with regard to their portfolio: the mark-to-market component of the f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the portfolio of the liquid scheme(s)/plan(s), money market instruments shall be excluded. 3. For the purpose of sub-clause (B) of clause 1, it is clarified that the repricing tenor of each of the securities included in the portfolio of the liquid scheme(s)/ plan(s) shall be 1 year or less. 4. The above requirements shall be disclosed in the offer document and shall form part of the investment allocation pattern. Any deviation from these requirements shall be viewed as violation of investment restrictions Schedule II Requirements in respect of time stamping machines [clause 8(3)] 1. For every machine, running serial number shall be stamped from the first number to the last number as per its capacity before repetition of the cycle. 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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