India's Sebi mandates mark-to-market valuation for mutual fund repo transactions starting 2025.

The Securities and Exchange Board of India (Sebi) will require mutual funds to use mark-to-market valuation for repurchase (repo) transactions starting January 1, 2025. This new rule aims to standardize the valuation of money market and debt instruments and prevent regulatory arbitrage. Currently, repo transactions are valued on a cost-plus accrual basis, but the new method will use valuations from external agencies for transactions over one day.

November 26, 2024
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