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 regard to timelines for declaration of NAV depending on investment objective and asset allocation of schemes,
The new timeline will come into force from July 1, 2023, the Securities and Exchange Board of India (Sebi) said in a circular.
The regulator has set an outer time limit of 9 am on T+1 day for declaration of NAV for schemes having exposure to exchange traded commodity derivatives (ETCDs) and Fund of Funds (FoFs) schemes (10 am on T+1 day).
T day refers to the date of investment in mutual fund units in the country.
In addition, the regulator has prescribed a time limit of 10 am on T+1 day for schemes investing at least 80 per cent of total assets in permissible overseas investments and index funds as well as ETFs investing at least 80 per cent of total assets in permissible overseas investments. At present, the time limit is 11 pm on T day.
For schemes that are unable to disclose NAV as per these timeline due to inability in capturing same day valuation of underlying investments, Sebi said that 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 on T day or 10 am on T+1 day.
For all the other schemes, Sebi said that the time limit would be 11 pm on T day.
While complying with the new timelines for declaration of NAV, AMCs as a principle will have to ensure that NAV of schemes is disclosed based on the value of underlying securities/funds as on the T day — date of investment in MF units.
