Presently, in respect of Unit Linked Funds, Valuation of Equity is carried out at lower of the closing price on NSE and BSE for the purpose of computation of daily NAV. In case the security is not traded on both NSE and BSE, then the closing price on any other stock exchange shall be considered.
IRDA vide its circular Ref. IRDA / F&I/INV/CIR/213/10/2013 dated October 30, 2013, stipulated that the Insurer shall select from NSE and BSE as Primary and Secondary Exchange and the valuation of equity shares shall be made on the closing price of the Primary Exchange selected. If such security is not listed / not traded on the Primary Exchange, Insurer shall use the closing price of the Secondary Exchange. The selection of the Primary and Secondary Exchange shall be followed consistently. Further, the Insurer shall implement the above, within 30 days of issuance of the circular.
In compliance of the aforesaid circular, the Company selected NSE as a Primary Exchange and BSE as a Secondary Exchange.
Accordingly, the closing price of the security on NSE would be considered for valuation of Equity and in case, the security is not listed / not traded on NSE, the closing price on BSE shall be considered for all computation of daily NAV ULIP Funds.
The aforesaid change would be made effective from November 25, 2013 onwards.