CHIEF GENERAL MANAGER
MUTUAL FUNDS DEPARTMENT
MFD/CIR/ 11 / 16159 /2002
August 22, 2002
All Mutual Funds Registered with SEBI
Unit Trust of India
Association of Mutual Funds in India
Rounding off NAVs
Please refer to Clause 2 of SEBI Circular MFD/CIR/08/514/2002 dated July 22, 2002 regarding rounding off NAVs.
Association of Mutual Funds in India (AMFI) has made a representation for certain modifications in the guidelines. After examining the matter, it has been decided that the mutual funds shall round off NAVs upto four decimals in respect of index funds and all types of debt-oriented schemes like liquid/money market, gilt, income, short term plan, fixed maturity plan, monthly income plans, etc. and upto two decimals in case of equity-oriented and balanced fund schemes. However, the mutual funds can round off NAVs upto more than two decimals in case of equity-oriented and balanced fund schemes also, if they so desire.
These guidelines being issued in accordance with the provisions of Regulations 48(1) and 77 of SEBI (Mutual Funds) Regulations, 1996 shall be implemented by August 31, 2002 by all mutual funds in case of existing and new schemes.
P. K. NAGPAL