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SEBI has relaxed NAV disclosure norms for fund houses offering international funds. Now, schemes both active and passives having at least 80% of the total assets invested in overseas investments can disclose their NAV by 10 AM on T+1 day.
Currently, such schemes have to disclose NAV by 11 pm on T-day i.e. the date of execution of transaction. With this, such schemes can disclose their NAV by next business day.
This has come after SEBI observed difficulties faced by fund houses in NAV disclosure due to difference in time zones. SEBI said, “To address the difficulties being faced in calculation of NAV for schemes investing overseas due to differences in time zones and market hours, partial modification with regard to timelines for declaration of NAV is prescribed depending on investment objective and asset allocation of the scheme.”
Further, SEBI clarified that if fund houses delay disclosing NAV by the given timeline, they can make disclosure in scheme information document along with reasons for such a delay.
The circular will come into force from July 1, 2023.
