Stocks

No closing day NAV for large investors in ETFs

Our Bureau Mumbai | Updated on July 30, 2021

SEBI has exempted the applicability of closing day NAV on transactions in units of Exchange Traded Funds by Authorised Participants and large investors directly with the asset management companies.

The decision was based on industry feedback that closing NAV of the day’ may not be relevant for the ETF transactions by authorised participants and large investors directly with the AMCs are based on price at which the securities representing the underlying index or underlying commodities are purchased or sold.

Based on recommendations of the Mutual Fund Advisory Committee, SEBI exempted the applicability of closing day NAV on these transactions. Appropriate disclosure in this regard shall be provided in the Scheme Information Document, Key Information Memorandum and Common application form, it said.

Published on July 30, 2021

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