Investment Valuation Norms for Mutual Funds
Summary
The circular mandates all SEBI-registered mutual funds to submit daily transaction details for specific debt securities to an AMFI-recommended agency. This requirement aims to improve the uniformity and accuracy of security valuation through daily matrix generation. The directive is issued under Regulation 77 of the SEBI (Mutual Funds) Regulations, 1996.
Text
all mutual funds shall provide transaction details of various types of debt securities like NCDs, Mibor linked floaters and CPs on daily basis in the prescribed format to the agency recommended by AMFI.
Eighth Schedule to SEBI (Mutual Funds Regulations), 1996 lays down the parameters for valuation of securities. Further, vide circulars dated September 18, 2000, March 28, 2001 and February 20, 2002, SEBI has prescribed detailed guidelines for valuation of securities.
Submission of data would help in daily matrix generation, would improve uniformity and accuracy of valuation in the mutual funds industry.
Source: SecMarx — Investment Valuation Norms for Mutual Funds. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.