Valuation of securities

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....18, 2000 and March 28, 2001. Association of Mutual Funds in India (AMFI) has made a representation for certain modifications in the guidelines. After examining the matter, the following modifications have been made in the guidelines : 1. Traded Securities The definition for traded securities given on page 1 of the circular dated September 18, 2000 shall be replaced by the following definition ....

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....may be used for a period of fifteen days beginning from the date of purchase. 2. Thinly Traded Debt Security The definition of a thinly traded debt security given in pt. 2 (page 2) of circular dated March 28, 2001 shall be replaced by the following definition : A debt security (other than Government Securities) shall be considered as a thinly traded security if on the valuation date, there are ....

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....bove will be set at least weekly, and in the event of any significant movement in prices of Government Securities on account of any event impacting interest rates on any day such as a change in the Reserve Bank of India (RBI) policies, the benchmark will be reset to reflect any change in the market conditions. 4. Mark up/Mark down yield The discount adjustments provided for securities rated by e....

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.... suggested by AMFI. A new clause namely C(III) will appear after Clause C(II) [page 5] of the circular dated September 18, 2000. The benchmark yield/matrix of spreads over benchmark yield obtained from any agency suggested by AMFI as a provider of benchmark yield/matrix of spreads over benchmark yield to mutual funds, must be applied for valuation of securities on the day on which the benchmark ....