Sebi extends date for applicability of NAV from January 1 to February 1, 2021

Due to operational challenges presented by AMFI, the markets regulator Sebi on Thursday has extended the date of implementation of uniformity in applicability of NAV on realisation of funds to February 1, 2021 from January 1, 2021.

"Upon consideration of the subsequent representation received from AMFI regarding operational challenges, it has been decided to extend the date of applicability of the aforementioned provision to February 1, 2021," Sebi said in a circular.

According to the new rules which was announced in September, investors will purchase NAV of the day when investor’s money reach AMC, irrespective of the size of the investments.

With respect of the 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. These rules would not apply to liquid and overnight funds.

Under existing rules, the NAV of the date of purchase is considered for investments of less than Rs 2 lakh, even if the money does not reach the asset management company (AMC), provided the purchase order is places within the cut-off time.