SEBI modifies Disclosure Time Limit for Mutual Funds NAV on Overseas Investment

Circular No. SEBI/HO/IMD/IMD-I POD2/P/CIR/2023/48, dated: 29.03.2023

Earlier, SEBI mandated Mutual Fund schemes to disclose the Net Asset Value (NAVs) of all schemes within a specific time limit. Now, to address the difficulties being faced in its calculation for schemes investing overseas due to differences in time zones and market hours, SEBI has made partial modifications with regard to timelines for the declaration of NAV depending on investment objective and asset allocation of schemes. The new timeline shall be effective from 01.07.2023.

The SEBI has set an outer time limit of 9am on T +1 day for declaration of NAV for schemes having exposure to exchange traded commodity derivatives (ETCDs) and Fund of Funds (FoFs) schemes (10am on T+1 day). T day refers to the date of investment in mutual fund units in the country.

Additionally, the SEBI has prescribed a time limit of 10 am on T+1 day for schemes investing at least 80% of total assets in permissible overseas investments and index funds as well as ETFs investing at 80% of total assets in permissible overseas investments. Presently, the time limit is 11 pm on T day.

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