TMI BlogUniform cut-off timings for applicability of Net Asset Value (NAV) of Mutual Fund scheme(s)/plan(s)X X X X Extracts X X X X X X X X Extracts X X X X ..... accordingly the following guidelines are being issued: 2. Definitions (1) In these Guidelines, unless the context otherwise required: a. Act means the Securities and Exchange Board of India Act, 1992; b. Board means the Securities and Exchange Board of India; c. cut-off timing , in relation to an investor making an application to a mutual fund for purchase or sale of units, shall mean the outer limits of timings within a particular day which are relevant for determination of the NAV that is to be applied for his transaction; d. international scheme means a scheme of a mutual fund which has substantial investments in foreign securities that are valued as per time zones other than Indian standa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (1) The following cut-off timings shall be observed by a mutual fund in respect of purchase of units in liquid fund schemes and their plans, and the following NAVs shall be applied for such purchase: a. where the application is received upto 12.00 noon on a day and funds are available for utilization on the same day the closing NAV of the day immediately preceding the day of receipt of application; b. where the application is received after 12.00 noon on a day and funds are available for utilization on the same day the closing NAV of the day immediately preceding the next business day ; and c. irrespective of the time of receipt of application, where the funds are not available for utilization on the day o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ter 3.00 pm with a local cheque or demand draft payable at par at the place where it is received closing NAV of the next business day ; and c. where the application is received with an outstation cheque or demand draft which is not payable on par at the place where it is received closing NAV of day on which the cheque or demand draft is credited. (3) The following cut-off timings shall be observed by a mutual fund in respect of repurchase of units in its other schemes and their plans, and the following NAVs shall be applied for such repurchase: a. where the application received upto 3.00 pm closing NAV of the day of receipt of application; and b. an application received after 3.00 pm closing NAV o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of compliance with these Guidelines. 3) The substance of these Guidelines shall be disclosed to investors in the offer document or in any addendum thereto. 10. SEBI Circulars SEBI/ IMD/CIR No. 8/5611/ 2004 dated March 19, 2004, SEBI/ IMD/CIR No. 9/6016/2004 dated March 25, 2004 and SEBI/ IMD/CIR No. 10/77780/ 2006 dated September 28, 2006 stand withdrawn. 11. These guidelines effective from October 16, 2006 are issued in exercise of powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992 read with the provisions of Regulation 77 of SEBI (Mutual Funds) Regulations, 1996 to protect the interests of investors in securities and to promote the development of, and to regulate the securities mar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing risk is 1 year or less 2. For the purpose of sub-clause (A) of clause 1, mark to market shall mean the valuation of an asset (e.g. marketable securities, derivatives and other financial contracts) using a traded price or a derived price from the corresponding yield curve. Further, it is clarified that for the purpose of calculating the mark to market component of the portfolio of the liquid scheme(s)/plan(s), money market instruments shall be excluded. 3. For the purpose of sub-clause (B) of clause 1, it is clarified that the repricing tenor of each of the securities included in the portfolio of the liquid scheme(s)/ plan(s) shall be 1 year or less. 4. The above requirements shall be disclosed in the offer document and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y recorded and reported to the Trustees. 8. Every effort should be made to ensure uninterrupted functioning of the time-stamping machine. In case of breakdown, the mutual fund shall take prompt action to rectify the situation. During that period, the mutual fund shall adopt an alternative method of time stamping applications which has already been approved by the Board of AMC and trustees. An audit trail shall be available to check and ensure the accuracy of time stamping process during the said period. 9. Any alternate mode of application that does not have any physical or electronic trail shall be converted into a physical piece of information and time-stamped in accordance with these guidelines. 10. The Mutual Fund shall m ..... X X X X Extracts X X X X X X X X Extracts X X X X
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