Definition
iNAV Dissemination
iNAV dissemination is the publishing of an ETF's indicative net asset value at frequent intervals during the trading day, via the exchange and the AMC, so investors and arbitrageurs can see fair value in real time.
SEBI requires ETF issuers to make iNAV available throughout market hours, commonly updated every 15 seconds, on exchange terminals and AMC websites. This transparency lets retail investors avoid buying at an unjustified premium and helps authorised participants police the price via creation/redemption.
The quality of dissemination matters: stale or infrequently updated iNAV, especially for international or fixed-income ETFs whose underlyings trade in different time zones or are illiquid, can widen the apparent premium/discount to NAV and confuse investors about true value.
Related terms
- ETF Creation/RedemptionCreation and redemption is the primary-market mechanism by which authorised participants exchange a basket of underlying securities (or cash) for new ETF units, or hand back units for the basket, keeping the ETF price aligned with its NAV.
- iNAV (Indicative Net Asset Value)iNAV is a near-real-time estimate of an ETF's per-unit net asset value, recalculated frequently through the trading day from the live prices of the underlying holdings.
- Premium/Discount to NAVAn ETF trades at a premium when its market price is above its net asset value and at a discount when below, reflecting temporary imbalances between on-screen supply and demand and fair value.
- International ETFAn international ETF gives Indian investors exposure to overseas markets or indices, such as the Nasdaq 100 or S&P 500, by holding foreign securities or feeding into an overseas fund.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.