InvestorQ : When is SEBI’s new mutual fund's NAV rule effective?
Purvesh made post

When is SEBI’s new mutual fund's NAV rule effective?

Answer
image
1 month ago
Follow

SEBI, in its latest circular, has extended the applicability date on new NAV rules to Feb 1, 2021, from the earlier announced date Jan 1, 2021. Securities and Exchanges Board of India has brought in new rules for NAV (net asset value) applicability for mutual fund schemes below Rs2lakh. SEBI circular had said that investors would get NAV once the money reaches the fund house irrespective of the investment amount from Jan 1, 2021. Now Mutual Fund houses have time till Feb 1 to follow these rules.

As of now, investors get the same day NAV if they invest up to Rs 2 lakh before the cut off time. When the new NAV rules become effective, investors will get NAV upon realization of funds by the AMC. In the case of NFO subscriptions, allotment date will be considered, irrespective of credit date & application submission date.

1 Views