New NAV rule applicability date from 2021 January 1 to February 1: SEBI extends..!

New NAV rule applicability date from 2021 January 1 to February 1: SEBI extends..!

According to SEBI’s new mutual fund NAV (Net Asset Value) rules, barring liquid and overnight funds, investors would get NAV once the money reaches the fund house irrespective of the investment amount.

SEBI has extended the applicability date on new NAV rules from January 1, 2021 to February 1, 2021.

According to SEBI’s new NAV rules, barring liquid & overnight funds, investors would get NAV once the money reaches the fund house irrespective of the investment amount from January 1, 2021. Now fund houses have time till February 1 to follow these rules.

So far, investors get the same day NAV if they invest up to Rs. 2 lakh before the cut off time. When the new NAV rules become effective, investors will continue to get previous day NAV irrespective of investment amount if they give purchase request before cut-off time in liquid and overnight funds. However, this will not be the case for other funds.

For other categories of mutual funds, investors will get NAV upon realization of funds by the AMC.

Therefore, even if your client has invested his money in the morning but for some reason the money does not reach the fund house before cut-off time, the investor will not get same day NAV.

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