Sebi proposes regular updates of NAVs by AIFs in Depository Systems

To promote transparency in the ecosystem of the Alternative Investment Fund (AIF), Sebi suggested Friday that AIFs regularly have to update the net asset value (NAVs) of their units in the storage system.

In his concept circular, Sebi “proposed to use the storage infrastructure, so that AIFs can be needed to maintain additional NAV from the units issued to investors based on the valuation of their investments in the deposits system”.

Sebi also suggested that AIFs or their registrar and transfer agent (RTA) have to upload the NAV from all AIF units in the storage system within 15 days of appreciation of the investment portfolio.

The valuation date will be taken as the date of the valuation report if made by an external appraiser, and if the date it is recorded in the internal details of the fund if done by an internal appraiser.

For existing AIFs schedules, Sebi said that AIFs or their RTAs should upload the latest NAV from ISINs with all AIF units in the storage system within 45 days of the circular issue.

The Securities and Exchange Board of India (Sebi) searched for public comments about the proposals until October 9.

According to the rules, AIFS can raise money from any investor, whether it is Indian, foreign or non-resident Indian, through the issue of units. The value of such units is calculated on the basis of the valuation of the investment portfolio of the AIF or the AIF scheme.