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 ..... circulars. The proposal of AMFI was considered and accordingly the following guidelines are being issued: 2. Definitions (1) In these Guidelines, unless the context otherwise requires: 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 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 after the day of application; and c. irrespective of the time of receipt of application, where the funds are not available for utilization on the day of the applic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... after 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 after the day of application; 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 application; and b. an application received after 3.00 pm closing NAV of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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 and SEBI/ IMD/CIR No. 9/6016/2004 dated March 25, 2004 stand withdrawn. 11. These guidelines 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 market. Yours faithfully, R. K. Nair Encl: a/a Schedule I Liquid fund schemes and pl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e.g. marketable securities, derivatives and other financial contracts) using a traded price or a derived price from the corresponding yield curve. 3. The above requirements shall be disclosed in the offer document and shall form part of the investment allocation pattern. Any deviation from these requirements shall be viewed as violation of investment restrictions Schedule II Requirements in respect of time stamping machines [clause 8(3)] 1. For every machine, running serial number shall be stamped from the first number to the last number as per its capacity before repetition of the cycle. 2. Every application for purchase shall be stamped on the face and the corresponding payment instrument shall be stamped on the ba ..... X X X X Extracts X X X X X X X X Extracts X X X X
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