“… to leverage upon the depository infrastructure such that AIFs may be required to maintain updated NAV (net asset value) of the units issued to investors based on valuation of their investments in the depository system,” Sebi said in a discussion paper.
The regulator said AIFs should upload the NAV of all units in the depository system within 15 days of the valuation of their investment portfolios.
At present, the value of units issued by AIFs is calculated based on the valuation of the investment portfolio of the fund.
Rules mandate Category I and Category II AIFs to undertake valuation of their investments at least once every six months by an independent valuer. Category III AIFs, meanwhile, have to ensure that the calculation of the NAV is independent of fund management and is disclosed to investors.
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