SEBI revises Net Asset Value rules for MF
The Securities and Exchange Board of India has introduced new rules for the multi-cap funds. It said that the fund managers invest up to 75% portfolio in the equity. However, the rules may apply from 1st January 2021. As of the source, the SEBI has changed Net Asset Value rules for Mutual funds.
Generally, MF investors who deposit cheque with less than Rs. 2 lakh those received the NAV of the stock on the same day of deposit. Besides, the investors who deposit above Rs. 2 lakh cheque that received NAV in three days from the day of the cheque submitted.
Now, the SEBI has changed rules for all investors in the MF field. Moreover, digitalized payments may improve by the new rules. Furthermore, SEBI’s new rules will not apply for Liquid and overnight funds.
The Mutual Fund schemes may allot units, and NAV based on when the schemes received the cheques rather than the size or time of investments.
The market regulator also said that MF houses should retain written policy. This will provide details regarding the role and obligations of several phases involved in controls of MF schemes. They also provide other details regarding the deployment and execution of an order. Moreover, the SEBI said to the MF managers as each scheme will have a portfolio in equity and equity-related instruments.