Valuation of repurchase (repo) transactions by Mutual Funds
Summary
SEBI mandates that repurchase transactions with a tenor of up to 30 days be valued on a mark-to-market basis to ensure uniformity. Overnight repo transactions are exempted from the requirement to obtain valuations from empanelled agencies. These regulatory changes to the SEBI Master Circular take effect from January 1, 2025.
Text
valuation of repurchase (repo) transactions including TREPS with tenor of upto 30 days shall also be valued at mark to market basis
valuation of all repo transactions, except for overnight repos... shall be obtained from valuation agencies
The provisions of this circular shall come into effect from January 01, 2025
This circular is issued in exercise of the powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992, read with the provision of Regulations 25(19), 47 and 77 of SEBI (Mutual Funds) Regulations, 1996
Source: SecMarx — Valuation of repurchase (repo) transactions by Mutual Funds. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.