Sebi Introduces Mark-to-market Basis Valuation For Repo Transactions By Mutual Funds

SEBI has introduced mark-to-market valuation for repo transactions by mutual funds, aligning with global standards to improve transparency and accuracy in asset valuations. The new regulation aims to ensure that repo trades, previously valued at cost, reflect their market value to provide a clearer picture of mutual fund portfolios. This move is expected to bolster investor confidence by enhancing the reliability of fund valuations. SEBI’s decision reflects its commitment to aligning Indian financial regulations with international best practices. The adoption of mark-to-market valuation underscores the regulator’s focus on protecting investors and fostering a transparent financial ecosystem. This development is part of broader efforts to strengthen the mutual fund industry and aligns with SEBI's strategy to improve governance in India’s capital markets.