Uniformity in calculation of Sale and Repurchase Price

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..... ar Sirs, 1. Uniformity in calculation of Sale and Repurchase Price As you are aware, Regulation 49(3) of SEBI (Mutual Funds) Regulations, 1996 lays down parameters for determining sale price and repurchase price of mutual funds units applicable for investors. It has been observed that mutual funds are using two different methods for calculating the sale and repurchase price of .....

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..... t be clarified in the offer documents that the loads shall be charged as a percentage of Net Assets Value (NAV) i.e. applicable load as a percentage of NAV will be added to NAV to calculate sale price and will be subtracted from NAV to calculate repurchase price. In other words the following formulae shall be used: Sale Price = Applicable NAV *(1 + Sales Load, if any) Repurchase .....

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..... uments also. Applicability The above disclosures pertaining to calculation of sale and repurchase price and rounding off NAVs shall be made in the new offer documents and while updating the existing offer documents as required under SEBI Guidelines. These guidelines effective from August 5, 2002 for all existing and new schemes are being issued in accordance with the provisions o .....

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