SEBI revises valuation of debt securities held by MFs
Published on Tue, Feb 02, 2010 at 17:23 | Source : Moneycontrol.com
Updated at Tue, Feb 02, 2010 at 22:13
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SEBI revises valuation of debt securities held by MFs
The Securities and Exchange Board of India has revised valuation of its debt securities held by mutual funds with effect from July 1, 2010. The market regulator has said that the mutual funds will have to value papers of up to 91 days at weighted average price.
The Securities and Exchange Board of India (SEBI) directed mutual funds to mark-to-market debt and money market securities with residual maturity of 91 days.
The market regulator has said that the mutual funds will have to value papers of up to 91 days at weighted average price.
The regulator, in a circular posted on its website, also asked mutual fund firms to disclose transaction details on a daily basis, including inter scheme transfers.
The new valuation norms debt and money market securities say that these securities in mutual fund portfolios will now be marked to market (traded securities) or valued by rating agencies (non-traded ones).
The changes will come into effect from July 1.
Currently, money market instruments are not mark-to-market. Also, only debt securities of above 182 days of maturity are subject to mark to market.
