9911796707
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 ..... mptions, to the disadvantage of other investors. As a proactive measure, keeping in view the interests of investors, SEBI had initiated a dialogue with the Mutual Funds industry in India including AMFI for adopting an uniform cut-off time for applying NAVs both for subscriptions and redemptions, across the industry. Taking into account the inputs received in this regard, the following guidelines are being issued: Applicability of these guidelines These guidelines shall be applicable to all the schemes/plans of Mutual Funds whether existing or new. However, considering the nature of International Funds (i.e. the mutual fund scheme(s) having substantial investments in foreign securities which are valued as per time zones other t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by the investor/ scheme/ plan on account of delays, shall be made good by the Asset Management Company (AMC). ii) Redemptions: In respect of valid applications received upto 3 p.m. by the Mutual Fund, same day s closing NAV shall be applicable. In respect of valid applications received after 3 p.m. by the Mutual Fund, the closing NAV of the next business day shall be applicable. In view of the above, the Mutual Fund shall ensure that there is an uniformity in time taken for issuing redemption proceeds to all investors. However, considering the nature of Liquid schemes/plans, NAV shall be applied to Liquid schemes/plans as per details given at (B) below. B) Mutual Fund Liquid Fund Scheme(s)/plan(s) : The scheme(s) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shall also be applicable to investments made through Sweep mode. 5.Evidence of acceptance through time stamping Mutual Funds shall disclose official points of acceptance of transactions in its offer documents and its web-site. The cut off time as mentioned in these guidelines shall be reckoned at these official points. All purchase and redemption applications must be demonstrably received by the Mutual Fund at these official points of acceptance of transactions. All these official points must have time stamping machine(s). For a given machine, the running serial number would be stamped from the first serial number of the machine and continue to be stamped upto its maximum capacity. Only, thereafter the cycle would be repeated. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dy been approved by the Board of AMC and trustees. An audit trail shall be available to check and ensure the accuracy of time stamping process during the said period. Any alternate methods of transaction adopted by the Mutual Fund that are not paper based or do not have an electronic trail (e.g. phone, SMS etc.) shall be converted into a physical piece of instruction and time stamped in accordance with the above guidelines. The Mutual Fund shall maintain and preserve all applications/requests, duly time stamped as aforesaid, so as to produce them as and when required by SEBI or auditors appointed by SEBI at least for a period as defined under Regulation 50 (2). No blank document shall be time stamped. Genuine errors, if any, during th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issue of this circular shall contain disclosures in accordance with these guidelines. These guidelines are being issued in accordance with the provisions of Regulation 77 of the SEBI (Mutual Funds) Regulations, 1996. Yours faithfully, (SURESH GUPTA) Annexure The scheme(s)/plan(s) having following characteristics with regard to its portfolio would be treated as Liquid Fund scheme(s)/plan(s):Mark-to-Market component of the fund on a weekly average basis is less than 10%. (Mark to Market would mean the valuation of an asset (e.g. marketable securities, derivatives and other financial contracts) using a traded price or a derived price from the corresponding yield curve).andMaximum repricing tenor of 1 year reckoned as u ..... X X X X Extracts X X X X X X X X Extracts X X X X
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