SEBI sets norms for MFs to value AT-1 bonds.

MOUs and Agreement

SEBI has introduced new guidelines for mutual funds to value AT-1 bonds. The new norms aim to enhance transparency and ensure accurate pricing of these high-risk instruments. Under the new regulations, mutual funds must adopt a consistent methodology for assessing the value of AT-1 bonds, which are often issued by banks and carry significant risks. This move is intended to protect investors by improving the accuracy of bond valuations and ensuring that mutual fund portfolios reflect true market conditions. The guidelines will help in maintaining investor confidence and market stability.


      SEBI's guidelines mandate regular audits of AT-1 bond valuations to ensure compliance and accuracy.

      The new norms require mutual funds to disclose valuation methods and risks associated with AT-1 bonds.

     

 

     


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