The Securities and Exchange Board of India (Sebi) on Tuesday tightened valuation norms for money market instruments in a mutual fund scheme. The latest amendments have been made with a view to ensure that the value of the portfolio reflects the market situation to a greater extent.All money market and debt securities, including floating rate securities, with residual maturity of up to or over 60 days will need be valued at the weighted average price at which they are traded on the particular valuation day. Earlier, the valuations norms were applicable only if the residual maturity was up to or over 91 days.Further, as part of its attempts to further enhance transparency, Sebi has directed the asset management companies to disclose all details of debt and money market securities transacted (including inter scheme transfers) in its schemes portfolio on their respective website.
Source: Financial Express
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