Mumbai: The Securities and Exchange Board of India will also soon come out with a consultation paper on uniform valuation methodology for pricing of corporate bonds.
Fund houses will be required to follow this uniformly across all the mutual funds. It will also evolve a supervisory and regulatory framework for pricing agencies, which would provide services related to pricing of corporate bonds to mutual funds.
Madhabi Puri Buch,Whole-Time Member, Sebi said: “The improvements that we expect will be in two areas with regard to- valuation for bonds papers which have a maturity of less than 60 days and also papers which are downgraded to below investment grade. Right now, the guidelines are very generic and we expect to improve.”
Currently, debt funds have mark to market for papers maturing above 60 days.
Sebi has also expanded the list of companies that could tap the offer for sale (OFS) route. The regulator said OFS mechanism would be available for shareholders of companies with market capitalisation of Rs 1,000 crore and above. Currently, top 200 companies by market capitalisation are allowed to use the OFS route.