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TMI BlogValuation of money market and debt securitiesX X X X Extracts X X X X X X X X Extracts X X X X ..... Valuation of money market and debt securities of short term maturity: 1.1 Kindly refer to SEBI circulars IMD/CIR No.16/ 193388/2010 dated February 02, 2010 read with Cir/IMD/DF/6/2012 dated February 28, 2012. The aforementioned SEBI circulars currently permit amortization based valuation of non-traded money market and debt securities, including floating rate securities, with residual maturity of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng it within the threshold of ±0.025% of the reference price. 2.0 Valuation of money market and debt securities which are rated below investment grade: 2.1 In order to have uniformity and consistency across the Mutual Fund industry on valuation of money market and debt securities rated below investment grade, the following has been decided: 2.1.1 All money market and debt securities whic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etween date of credit event and receipt of valuation price from valuation agencies, AMCs shall consider such traded price for valuation if it is lower than the price post standard haircut. The said traded price shall be considered for valuation till the valuation price is determined by the valuation agencies. 2.1.3.2 In case of trades after the valuation price is computed by the valuation agencie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ich the security was valued vis-a-vis the price post haircuts or the average of the price provided by the valuation agencies (as applicable) and the impact of such deviation on scheme NAV (in amount and percentage terms) shall be reported to the Board of AMC and Trustees. 2.1.4.3 The rationale for deviation along-with details as mentioned at para 2.1.4.2 above shall also be disclosed to investors ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f paras 2.1.2., 2.1.3.1, 2.1.3.3 and 2.1.4 above shall be applicable. 4.0 This circular is issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992, read with the provisions of Regulation 77 of SEBI (Mutual Funds) Regulations, 1996, to protect the interests of investors in securities and to promote the development of, and to regulate the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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