Thursday, February 2, 2023
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HomeMarketStocksSebi mulls standardised approach to valuation of AIF investment portfolios

Sebi mulls standardised approach to valuation of AIF investment portfolios

The Securities and Exchange Board of India (Sebi) has proposed that different funding funds (AIFs) undertake a standardised methodology for valuation of funding portfolios managed by them.

At current, AIF laws concentrate on disclosures to buyers concerning the valuation of investments and presently don’t prescribe any tips, managers of AIFs have the flexibleness to undertake any methodology for valuation of funding portfolio.

“A standardised strategy with regard to valuation rules/methodology/normal for valuing funding portfolio is among the steps to make sure honest disclosure of worth of funding portfolio to the buyers,” Sebi stated on Friday in a dialogue paper.

“It will additionally make sure that the valuation rules/methodologies/requirements are uniform throughout the AIF trade and efficiency of a selected AIF in addition to that of the AIF trade is benchmarked based mostly on valuation carried out on uniform precept/methodology to mirror their efficiency in a good method.”

The regulator stated AIFs Could also be mandated to hold out valuation of their funding portfolio as per IPEV (Worldwide Personal Fairness and Enterprise Capital Valuation) Tips.

The regulator additionally proposed sure standards for appointment of impartial valuer.

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