This circular modifies the valuation methodology for repurchase ...

Revamped valuation norms for mutual funds' repo transactions.

November 29, 2024

Circulars     SEBI

This circular modifies the valuation methodology for repurchase (repo) transactions, including tri-party repo (TREPS), by mutual funds. Previously, repo transactions up to 30 days tenor were valued on cost plus accrual basis. The circular mandates valuing all repo transactions, except overnight repos, on a mark-to-market basis using prices from AMFI-empaneled valuation agencies, aligning with the valuation methodology for other money market and debt securities. Short-term bank deposits will continue to be valued on cost plus accrual basis. The changes aim to ensure uniformity in valuation methodology and address potential regulatory arbitrage concerns. The provisions are effective from January 1, 2025, under SEBI's powers to regulate securities markets and protect investor interests.

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