Fair valuation principles require mutual funds to use board approved valuation policies ensuring true and fair NAV. Mutual funds must adopt Fair Valuation principles reflecting realizable value, under board approved valuation policies specifying methodologies for each asset class, conflict of interest safeguards, periodic independent review and documentation. The AMC is ultimately responsible for true and fair valuation and correct Net Asset Value, may deviate from disclosed procedures to ensure fair valuation with board and investor disclosures, and must follow prescribed guidelines for traded and non traded securities, debt instruments, precious metals, NAV computation, transaction recording timelines, illiquid securities limits, and preventive controls.