NAV Applicability

SEBI circular :

As per SEBI circular no. SEBI/HO/IMD/DF2/CIR/P/2020/175 dated September 17, 2020 read with circular no. SEBI/HO/IMD/DF2/CIR/P/2020/253 dated December 31, 2020, effective from February 1, 2021, the Net Asset Value (NAV) date applicable to all mutual fund purchases will be the date on which funds are received by the fund house (or AMC).

In the past, fund houses could provisionally allocate units based on the NAV on the date the order was placed, whereas the funds were received later via payment systems.The provisional allotment is now discontinued. However, the above rule is already applicable for purchase transactions under liquid funds and overnight Funds.

How does it affect investors ?

  1. The investor may not get the same NAV if the payment modes are other than net Banking(Direct) or UPI.
  2. The time taken for the realization of funds depends on the payment mode. The below table shows when the NAV allotment happens based on the chosen payment mode.

Transaction wise NAV Applicability:

Transaction Type Transaction received before cut-off timing Money Received by MF before cut-off timing Applicable NAV
One time Purchase / SIP Installment Yes Yes Same Business Day
One time Purchase / SIP Installment Yes No Next business day on which money received by the fund before cut-off time
One time Purchase / SIP Installment No Yes Next business day on which Time Stamping done before cut-off time
One time Purchase / SIP Installment No No NAV of subsequent Business Day on which fund realized prior to 3.00 p.m. shall be applicable
Transaction Type Transaction received before cut-off timing Money Received by MF before cut-off timing Applicable NAV
Switch In N/A Yes Business Day on which funds are received (in line with redemption pay out of Switch Out scheme) in Switch-in scheme before cut-off time
Switch out Yes N/A Same Business Day

FP-ONDC Payment Cut-off time for same day unit allotment

Please refer to Payments Settlement TATs document at Cybrilla OPAT.