Uniform cut-off timings for applicability of Net Asset Value (NAV) of Mutual Fund scheme(s)/plan(s)

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....he proposal of AMFI was considered and accordingly the following guidelines are being issued: 2.  Definitions (1) In these Guidelines, unless the context otherwise required: a.      'Act' means the Securities and Exchange Board of India Act, 1992; b.      'Board' means the Securities and Exchange Board of India; c.      'cut-off timing', in relation to an investor making an application to a mutual fund for purchase or sale of units, shall mean the outer limits of timings within a particular day which are relevant for determination of the NAV that is to be applied for his transaction; d.    &nbsp....

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....units is deposited by it in the bank with utmost expedition prudently utilizing the appropriate banking facility, so as to comply with sub-paragraph (1). (3)    Any loss occasioned to any investor or to the scheme or plan on account of non-compliance with sub-paragraph (2) shall be made good by the asset management company. 5.  Cut-off timings for liquid fund schemes and plans (1)    The following cut-off timings shall be observed by a mutual fund in respect of purchase of units in liquid fund schemes and their plans, and the following NAVs shall be applied for such purchase: a.      where the application is received upto 12.00 noon on a day and funds ....

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....mings for other schemes and plans (1)      A mutual fund shall reckon only prospective NAV in accordance with this clause, in respect of all their schemes and plans other than liquid fund schemes and plans. (2)      The following cut-off timings shall be observed by a mutual fund in respect of purchase of units in its other schemes and their plans, and the following NAVs shall be applied for such purchase: a.      where the application is received upto 3.00 pm with a local cheque or demand draft payable at par at the place where it is received - closing NAV of the day of receipt of application; b.      wher....

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....ransactions as if they were repurchase transactions. 8.  Time stamping 1)     Every mutual fund shall disclose the location of its official points of acceptance in its offer documents and websites and shall receive the applications made by investors only at such official points. 2)     Clauses 5 and 6 shall apply with reference to the point of time at which the applications are received at such official points of acceptance. 3)     All official points of acceptance shall have time stamping machines which are in compliance with the requirements mentioned in Schedule II. 9.  Compliance reporting and disclosures 1)   &....

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....rket component of the fund on a weekly average basis is less than 10%;     the repricing tenor is not more than 1 year, reckoned as under - (i)    for a fixed rate asset, the remaining tenor is 1 year or less; (ii)   for a floating rate asset, the interest reset frequency is 1 year or less; (iii)  for a fixed rate or floating rate asset where the principal is paid in a staggered and/or on amortizing basis (e.g. securitized papers), the average maturity of such an asset is 1 year or less; (iv)  for a portfolio using interest rate swaps, a.      the composite floating rate asset (underlying fixed rate asset and interest r....

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....ll be viewed as violation of investment restrictions Schedule II Requirements in respect of time stamping machines [clause 8(3)] 1.    For every machine, running serial number shall be stamped from the first number to the last number as per its capacity before repetition of the cycle. 2.    Every application for purchase shall be stamped on the face and the corresponding payment instrument shall be stamped on the back indicating the date and time of receipt and running serial number. The application and the payment instrument shall contain the same serial number. 3.    Every application for redemption shall be stamped on the face threof and on the investor's acknowledgment copy (or t....