INVESTMENT VALUATION NORMS :

Regulation 47 deals with the method of valuation of investments. Every mutual fund shall ensure that the asset management company computes and carries out valuation of investments made by its scheme(s) in accordance with the investment valuation norms specified in Eighth Schedule, and publishes the same with the valuation norms specified in the Eighth Schedule to the Regulations.

Regulation 48 lays down that every mutual fund shall compute the NAV of each scheme by dividing the net assets of the scheme with a number of units of that scheme outstanding on the valuation date. The Net Asset Value of the scheme shall be calculated on daily basis and published in at least two daily newspapers having circulation all over India.Regulation 49 deals with pricing of units. The price at which units may be subscribed or sold and the price at which such units may at any time be purchased by the mutual fund shall be made available to the investors .

In the case of open ended scheme the mutual fund shall at least once in a week publish in a daily newspaper of all India circulation, the sale and repurchase price of the units. The funds shall ensure that such repurchase price is not lower than 93%of NAV and the sale price is not higher than 107 per cent of the NAV. The difference between repurchase price and sale price shall not exceed 7 percent calculated on the sale price.

The price of units shall be determined with reference to the last determined NAV, unless the scheme announces the NAV on a daily basis and the sale price is determined with or without a fixed premium added to the future NAV which is declared in advance.