The Securities and Exchange Board of India (SEBI) has proposed to make changes in the final time to decide the Net Asset Value (NAV) in the case of reconstruction of mutual funds ‘Overnight Scheme’.
SEBI has proposed that in cases where applications for liquid funds are received till 3 pm and overnight funds are received till 7 pm, closing NAV will be taken just before the next business day.
If this application comes after these deadline, then the closing NAV of the next business day will be considered. NAV helps investors to understand their investment market value.
This proposal of SEBI comes after the order of upstreaming of customer funds to stock brokers, under which the credit balance of customers is placed with the Clearing Corporation at the end of the day. The purpose of upstreaming was to ensure the minimum risk of customers’ funds, as these funds are available for a period of one day and only invest in risk-free government securities.
First Published – January 20, 2025 | 10:44 pm IST
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