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SEBI says same-day NAV can be availed only after funds realised

Earlier, it was possible to get same day's NAV if the investment was less than Rs 2 lakh.

September 18, 2020 / 08:08 PM IST

The Securities and Exchange Board of India (SEBI) on September 17 stated that mutual fund (MF) investors would be able to avail the closing net asset value (NAV) of the scheme, on the day their funds are realised.

"... it has been decided that in respect of purchase of units of mutual fund schemes (except liquid and overnight schemes), closing NAV of the day shall be applicable on which the funds are available for utilisation irrespective of the size and time of receipt of such application," SEBI circular read.

The new ruling would come into effect from January 1, 2021.
Earlier, an MF investor could even get the same-day NAV -- regardless of realisation of funds -- as long as the investment was under Rs 2 lakh and before cut-off time.

“Earlier, there was some flexibility given. With the banking system now becoming more robust, the applicability has been made on the realisation of funds across the board,” said Dhirendra Kumar, founder and chief executive officer of MF tracker Value Research.