Review of provisions regarding valuation of debt and money market instruments due to the COVID - 19 pandemic.

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....s/ Association of Mutual Funds in India (AMFI)/ Debenture Trustees (DTs) Sir / Madam, Subject: Review of provisions regarding valuation of debt and money market instruments due to the COVID - 19 pandemic. 1. In terms of the SEBI Circular No. SEBI/HO/IMD/DF4/CIR/P/2019/102 dated September 24, 2019, valuation agencies engaged by AMFI recognize default of a security under clause 5.1.1.....

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....al received by Mutual Funds from lenders/issuer/Debenture Trustees shall be reported immediately to the valuation agencies (along with the other material information required for the purpose of valuation), Credit Rating Agencies and AMFI. AMFI, on receipt of such information, shall immediately disseminate it to its members. 4. Further, if the valuation agency, based on its assessment of the pro....

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....be in force till December 31, 2020. 7. Further, as per the Principles of Fair Valuation specified in Eighth Schedule of SEBI (Mutual Funds) Regulations, 1996, and other circulars issued, AMCs shall continue to be responsible for true and fairness of valuation of securities. 8. This Circular shall come into force with immediate effect. 9. This circular is issued in exercise of powers confe....