Section 21: The consideration receivable on disposal of a real estate asset is to be recognised initially at fair value. In particular, if payment for a real estate asset is deferred, the consideration received is recognized initially at the cash price equivalent. The difference between the nominal amount of the consideration and the cash price equivalent should be recognised as interest revenue over the period of credit

Q: What does Section 21 of The SEBI (Mutual Funds) Regulations, 1996 (TSMFR) deal with?

Section 21 TSMFR pertains to "The consideration receivable on disposal of a real estate asset is to be recognised initially at fair value. In particular, if payment for a real estate asset is deferred, the consideration received is recognized initially at the cash price equivalent. The difference between the nominal amount of the consideration and the cash price equivalent should be recognised as interest revenue over the period of credit". It is part of the The SEBI (Mutual Funds) Regulations, 1996, a legislation enacted by the Parliament of India. Section 21 of The SEBI (Mutual Funds) Regulations, 1996 (TSMFR) governs the consideration receivable on disposal of a real estate asset is to be recognised initially at fair value. In particular, if payment for a real estate asset is deferred, the consideration received is recognized initially at the cash price equivalent. The difference between the nominal amount of the consideration and the cash price equivalent should be recognised as interest revenue over the period of credit. As verified on 19 May 2026.

Q: Is Section 21 TSMFR still in force?

Yes, Section 21 of the The SEBI (Mutual Funds) Regulations, 1996 is currently in force across the Republic of India.

Q: What is धारा 21 TSMFR?

धारा 21 TSMFR is the Devanagari Hindi reference for Section 21 of the The SEBI (Mutual Funds) Regulations, 1996. Section 21 of The SEBI (Mutual Funds) Regulations, 1996 (TSMFR) governs the consideration receivable on disposal of a real estate asset is to be recognised initially at fair value. In particular, if payment for a real estate asset is deferred, the consideration received is recognized initially at the cash price equivalent. The difference between the nominal amount of the consideration and the cash price equivalent should be recognised as interest revenue over the period of credit. As verified on 19 May 2026.

Q: What is Dhara 21 TSMFR?

Dhara 21 TSMFR is the Roman Hindi reference for Section 21 of the The SEBI (Mutual Funds) Regulations, 1996. "Dhara" means "Section" in Hindi. Section 21 of The SEBI (Mutual Funds) Regulations, 1996 (TSMFR) governs the consideration receivable on disposal of a real estate asset is to be recognised initially at fair value. In particular, if payment for a real estate asset is deferred, the consideration received is recognized initially at the cash price equivalent. The difference between the nominal amount of the consideration and the cash price equivalent should be recognised as interest revenue over the period of credit. As verified on 19 May 2026.

Q: How to cite Section 21 of The SEBI (Mutual Funds) Regulations, 1996?

Cite as: "Section 21, The SEBI (Mutual Funds) Regulations, 1996 (TSMFR)" in legal briefs. For academic writing, use the BlueBook format: The SEBI (Mutual Funds) Regulations, 1996, § 21 (India).

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Securities and Exchange Board of India (Mutual Funds) Regulations, 1996

[Regulation 49(3B)(6)] [Substituted by Not. No. F.No. LAD-NRO/GN/2008/03/123042, dated 16.4.2008]

INITIAL ISSUE EXPENSES

Accounting treatment with regard to initial issue expenses :-

(a) Asset management companies [trustee company or sponsor] [Substituted by S.O. 32(E), dated 12.7.1998] may launch schemes either on a "load " or "no-load basis ", or on a mixed basis with two classes of units in the same scheme - one with load and the other without load, provided that the implications of such load on the NAV for the investors shall be clearly explained through a worked-out example in the offer document. Asset Management Company trustee company or sponsor may also launch "partial load " schemes in which a part of the load would be borne by the asset management companies trustee company or sponsor and the balance by the scheme. However such schemes will not qualify to be "no load " schemes and would be treated in the same manner as "load " schemes. In the case of a no-load scheme, the initial issue expenditure shall be borne by the Asset Management Company trustee company or sponsor.

(b) [ For a close-ended scheme floated on a `load' basis prior to commencement of the Securities and Exchange Board of India (Mutual Funds) (Amendment) Regulations, 2008, the initial issue expenses shall be amortised on a weekly basis over the period of the scheme: [Substituted by Not. No. F.No. LAD-NRO/GN/2008/03123042, dated 16.4.2008]

(c) For open-ended scheme floated on a load basis, the intial issue expenses may be amortised over a period not exceeding five years. Issue expenses incurred during the life of an open-ended schemes shall be amortised.]

(d) [ In case of close-ended schemes floated on a `load' basis prior to commencement of the Securities and Exchange Board of India (Mutual Funds) (Amendment) Regulations, 2008, the unamortised portion of the expenses shall be included in the calculation of the NAV. However, such portion shall not be included in the NAV for the purposes of determining the asset management company's investment management and advisory fees or for determining the limitation of expenses under regulation 52 of these regulations.] [Substituted by Not. No. FNO. LAD-NRO/GN/2008/03/123042, dated 16.4.2008 ]

(e) For schemes floated on a no-load basis, the asset management company may levy an additional management fee not exceeding 1% of the NAV. The asset management company may be entitled to levy a contingent deferred sales charge for redemption during the first four years after purchase, not exceedings 4% of the redemptiopn proceeds in the first year, 3% in the second year, 2% in the third year and 1% in the fourth year.

(f) All subsequent distribution charges must in the case of load schemes shall be borne by the scheme and in the case of no-load schemes borne by the asset management company.