The Securities and Exchange Board of India, (SEBI) on August 05, 2024, issued a notification regarding the Valuation of Additional Tier 1 Bonds (“AT-1 Bonds”).
In order to align the valuation methodology with the recommendation of NFRA, it has been decided that the valuation of AT-1 Bonds by Mutual Funds shall be based on Yield to Call.
For all other purposes, since liquidity risk of perpetual bonds is required to be suitably captured, deemed maturity of all perpetual bonds shall continue to be in line with the clause 9.4.2 of the Master Circular.
[Notification No. SEBI/HO/IMD/PoD1/CIR/P/2024/106]
