SEBI/IMD/CIR No. 11/142521/08
October 24, 2008
All Mutual Funds Registered with SEBI
Association of Mutual Funds in India (AMFI)
Re.: Applicability of Net Asset Value (NAV) for Income/Debt oriented Mutual
Fund scheme(s)/plan(s) (other than liquid fund schemes).
1. Please refer to SEBI Circular SEBI/IMD/CIR No.11/78450/06 dated October
11, 2006 on the “Uniform cut-off timings for applicability of Net Asset Value
(NAV) of Mutual Fund Scheme(s)/ plan(s)”.
2. The issue of applicability of NAV on realisation basis in case of Income/Debt
oriented schemes (other than liquid fund schemes) was discussed with AMFI
and in the Mutual Fund Advisory Committee. It was felt that steps need to be
initiated to harmonise the NAV applicability with the realisation of money and
to move away from the NAV based on the application date.
3.In view of the same, it has been decided to modify the guidelines specified in
the aforementioned circular in case of large applications for purchase of
Income/ Debt oriented schemes other than liquid fund schemes by inserting a
clause 6 (2)(A) after clause 6(2) as under:
“(2)(A) In respect of purchase of units in Income/ Debt oriented schemes
(other than liquid fund schemes and plans) with amount equal to or more
than Rs. 1 crore, irrespective of the time of receipt of application, the
closing NAV of the day on which the funds are available for utilisation
shall be applicable.”
4. All other conditions specified in the above mentioned circular remain
5. This circular effective from October 30, 2008 is issued in exercise of powers
conferred under Section 11 (1) of the Securities and Exchange Board of India
Act, 1992, read with the provisions of Regulation 77 of SEBI (Mutual Funds)
Regulations, 1996, to protect the interests of investors in securities and to
promote the development of, and to regulate the securities market.