The Securities Exchange Board of India through circular dated July 30, 2021 issued to Mutual Funds(MFs) and Asset Management Companies has provided clarification regarding transactions in units of Exchange Traded Funds directly with Asset Management Companies. The circular provides that for the above mentioned transactions, 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.
Appropriate disclosure in this regard shall be provided in the Scheme Information Document, Key Information Memorandum and Common application form.
