Valuation of Debt securities by Mutual Funds

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....t securities by Mutual Funds This is in partial modification of SEBI Circular No. MFD/CIR/8/92/2000 dated September 18, 2000 and MFD/CIR No. 14/442/2002 dated February 20, 2002, which, inter-alia, specified the discount adjustments for debt securities rated by external agencies for ill-liquidity risk, promoter background, finance company risk and issuer class risk. It has been brought to not....

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....ed instruments with duration over 2 years 75 bps 25 bps 400 bps 100 bps   In case of unrated debt securities : Category Current Proposed Unrated instruments with duration upto 2 years Discretionary discount of upto +50 bps over and above mandatory discount of +50 bps Discretionary discount of upto +450 bps over and above mandatory discount of +50 bps Unr....