For this purpose, the valuation date will be regarded as the date of the valuation report in cases where an independent valuer is appointed, and the date on which the valuation is recorded in the internal records of the fund when the valuation is carried out by an internal valuer.The AIF manager is responsible for the timely and accurate upload of NAV data.
This move, Sebi said, is aimed at leveraging the custody infrastructure to enhance transparency and operational efficiency, and facilitate system readiness of AIFs.
Sebi has also directed depository institutions to create the necessary infrastructure to enable RTAs to upload NAVs and ensure that they are reflected in the depository system.
Wherever AIF NAVs are displayed, custodians must carry a disclaimer stating that the NAV is based on the valuation methodology and accounting practices followed by the respective AIF. Under the existing framework, AIFs are allowed to raise funds from Indian, foreign and non-resident Indian investors through the issuance of units, the value of which is determined based on the valuation of the AIF’s investment portfolio.
Category I and Category II ABFs are required to have their investments valued by an independent valuer at least once every six months, although this period can be extended to one year with the approval of at least 75 percent of investors based on value.
Category III AIFs must ensure that the calculation of the net asset value is carried out independently of the fund management function. The net asset value must be disclosed to investors at least once a quarter for closed-end funds and at least once a month for open-end funds.
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