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This query is : Resolved

rashmi (Querist)

06 February 2008 The price band for the sale price and repurchase price as per SEBI Regulations 1996 is as follows where,
a) sale price should not be higher than 107% of NAV,
b)repurchase price should not be lower than 93% of NAV, and
c)difference between sale price and repurchase price calculated on sale price should not exceed 7%.

Is there any change in this rule???

Abhinav Khemani

Abhinav Khemani (Expert)

19 February 2008 Dear Rashmi,

First of all let me tell you that this is not a price band rather we can say that this is a band for Entry and exit loads that is charged by the mutual fund when we invest and redeem in a mutual fund scheme.

There is no change in this rule and this rule implies that maximum entry/exit load whic a mutual fund can charge is 7%. However, this rule is applicable for open-ended scheme only.

For close ended schemes there is separate band i.e. repurchase price shall not be lower than 95% of the NAV.

Feel free to ask me any type of query on Mutual Funds.

Regds
Abhinav Khemani

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