SEBI vide its Circular dated 29th March 2023 issued to All Mutual Funds (MFs)/ Asset Management Companies (AMCs)/ Trustee Companies/ Board of Trustees of Mutual Funds/ Association of Mutual Funds in India (AMFI).
The circular states:
Mutual funds are mandated to disclose the NAVs of all schemes within a given outer time limit.
However, to address the difficulties being faced in calculation of NAV for schemes investing overseas due to differences in time zones and market hours, SEBI has made partial modification with regards to timeline for declaration of NAV depending on investment objective and assets allocation.
T day refers to the date of investment in a Mutual fund unit in India.
For all other scheme the time limit would be 11pm + 1day.
SEBI has set an outer time limit of 9am on T+1day for declaration of NAV for schemes having exposure to exchange traded commodity derivatives (ETCDs) and Funds of Funds (FoFs)schemes 10am to T+1 day.
SEBI has prescribed a time limit of 10am on T+1 day for schemes investing at least 80 percent of total assets in permissible overseas investment. At present, the time is 11pm on T day.
Schemes that are unable to disclose NAV as per timeline due to inability in capturing same day valuation of underlying investments, for such schemes can disclose NAVs as per disclosure made in SID along with reasons for such delayed disclosure. Currently the time limit is 11 pm to T day or 10 am on T+1 day.
While complying with the new timelines for declaration of NAV, AMCs as a principle shall ensure that NAV of schemes is disclosed based on the value of underlying securities/ Funds as on the T day.
This Circular shall come into force with effect from 1st July 2023.
Link of the circular: https://www.sebi.gov.in/legal/circulars/mar-2023/review-of-time-limit-for-disclosure-of-nav-of-mutual-fund-schemes-investing-overseas_69519.html
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