SEBI has asked fund houses to offer real time NAV on ETFs transaction if the execution happens directly through AMCs.
Since AMCs buy and sell units in large quantity, the ticket size would be very higher and hence only authorized participants and large investors will be benefited by this move.
"It has been decided to clarify that for the above-mentioned transactions (in ETFs by large investors), intra-day NAV, based on the executed price at which the securities representing the underlying index or underlying commodity (ies) are purchased / sold, shall be applicable," SEBI said in a circular issued on Friday.
According the debtguru Joydeep Sen, the move would "reduce the extent of guesswork in the traded price, as otherwise the reference point is yesterday's NAV and today's market movement. With declared data on intra-day NAV, it will be more realistic i.e. data-driven."
MFs will have to make appropriate disclosure in this regard in scheme information document, key information memorandum and common application form.
