Circular No. SEBI/HO/IMD/IMD-I PoD-1/P/CIR/2024/163; Dated: 26.11.2024
SEBI has introduced mark-to-market basis valuation for repurchase (repo) transactions (including tri-party repo, i.e. TREPS) with a tenor of up to 30 days by Mutual Funds. This is done to ensure uniformity in the valuation methodology of all money market and debt instruments and address concerns of unintended regulatory arbitrage that may arise due to different valuation methodologies adopted.
Further, the valuation of all repo transactions, except for overnight repos, in addition to the valuation of money market and debt securities, must be obtained from Valuation Agencies. The circular shall be effective from January 1, 2025.
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