Valuation and provisioning of non-performing assets: mutual funds must follow specified valuation methodology and phased provisioning schedule. SEBI prescribes valuation norms requiring mutual funds to categorise securities as traded, thinly traded or non-traded and to apply specified valuation approaches: equity non-traded/thinly traded securities are valued by averaging net worth per share and a discounted industry P/E-based capitalised earnings measure with illiquidity discounts; non-traded debt over 182 days is priced on yield-to-maturity using a GOI-based benchmark duration-bucket curve and a dynamic spread matrix, with mark-ups/mark-downs for illiquidity and internal ratings and mandatory independent valuation where a security exceeds 5% of scheme assets.
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Provisions expressly mentioned in the judgment/order text.
Valuation and provisioning of non-performing assets: mutual funds must follow specified valuation methodology and phased provisioning schedule.
SEBI prescribes valuation norms requiring mutual funds to categorise securities as traded, thinly traded or non-traded and to apply specified valuation approaches: equity non-traded/thinly traded securities are valued by averaging net worth per share and a discounted industry P/E-based capitalised earnings measure with illiquidity discounts; non-traded debt over 182 days is priced on yield-to-maturity using a GOI-based benchmark duration-bucket curve and a dynamic spread matrix, with mark-ups/mark-downs for illiquidity and internal ratings and mandatory independent valuation where a security exceeds 5% of scheme assets.
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