Ch.7 · NAV Calculation Rules · medium
What is the 'allotment of units' process after an NFO subscription?
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EXPLANATION
After an NFO closes, the AMC processes all valid subscriptions, allots units at the NFO price (typically ₹10), and sends allotment confirmation (account statements) to investors within 5 business days of allotment. For oversubscribed schemes, pro-rata allotment is done and excess money refunded. The scheme then reopens for ongoing transactions within 5 business days of allotment.
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