The Securities and Exchange Board of India (SEBI) on March 29, 2023, issued a circular regarding the review of time limit for disclosure of NAV of Mutual fund schemes investing overseas.
The 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, partial modification with regard to timelines for declaration of NAV is prescribed depending on investment objective and asset allocation of schemes.
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 (i.e. date of investment in MF units in India).
The new timeline for all schemes other than those mentioned in the table, for schemes having exposure to ETCDs, Fund of Funds (FoFs) schemes, Schemes investing atleast 80% of total assets in permissible overseas investments, Index funds and ETFs investing atleast 80% of total assets in permissible overseas investments, Schemes unable to disclose NAV as per timeline mentioned due to inability in capturing same day valuation of underlying investments is mentioned in the table.
The provisions of this circular shall come into force with effect from July 01, 2023.
[Circular No. SEBI/HO/IMD/IMD-I POD2/P/CIR/2]
