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SEBI has modified the timing for revealing the net asset value of funds investing abroad from July.
Mutual Funds investing in domestic markets are mandated to disclose the NAVs of all schemes by 11 pm on trading day.
However, SEBI said to address the difficulties being faced in the 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.
For MF schemes that are having exposure to exchange-traded commodity derivatives and fund of funds, the NAV has to be announced between 9 am and 10 am after the trade while schemes investing 80 per cent of assets in oversea investments, index funds, and overseas ETFs have to disclose NAV by 10 am after the trading day against 11 pm on the trading day.
Schemes that are unable to disclose NAV as per timeline due to the inability in capturing same day valuation of underlying investments can choose the time as per disclosure made in Scheme Information Document along with reasons for delayed disclosure, said SEBI.
While complying with the new timelines for the declaration of NAV, Asset Management Companies as a principle will ensure that the NAV of schemes is disclosed based on the value of underlying securities and Funds as the date of investment in MF units in India, it said.
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