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NISM Certifications · NISM-Series-V-A: Mutual Fund Distributors · Net Asset Value, Total Expense Ratio and Pricing of Units

Under SEBI rules, what is the cut-off time for applications for purchase of units of liquid and overnight schemes to get the NAV of the day of funds availability?

For liquid and overnight schemes, the applicable NAV of the day of funds availability requires the application and cleared funds to be available before the 1.30 p.m. cut-off. Later times such as 3 p.m. apply to other scheme types like redemptions of non-liquid schemes.

  1. AFunds must be available for utilisation before the cut-off time of 1.30 p.m.Correct
  2. BFunds must be available before 3.00 p.m.
  3. CFunds must be available before 4.00 p.m.
  4. DFunds must be available before 5.00 p.m.

Explanation

For liquid and overnight schemes, the NAV applicable depends on the funds being available for utilisation before the 1.30 p.m. cut-off on the day, and the application being received before it. The other times apply to other categories or are incorrect.

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