Financial Daily from THE HINDU group of publications
Thursday, May 16, 2002
Financial Daily from THE HINDU group of publications Thursday, May 16, 2002 |
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Markets
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Mutual Funds New SEBI norms for MF holding in unlisted scrips Our Bureau
NEW DELHI, May 15 THE Securities and Exchange Board of India (SEBI) has, in consultation with the Association of Mutual Funds in India (AMFI), issued guidelines for valuation of investments in unlisted equity shares. These guidelines are expected to bring about uniformity in the calculation of Net Asset Values (NAVs) of mutual funds schemes. The SEBI guidelines also prescribe exercise of due diligence while making investments in unlisted equity shares and review of their performance so as to protect the interests of the investors. The capital market regulator has stipulated that mutual funds should not make investment in unlisted equity shares at a price higher than the price obtained by using the methodology prescribed by SEBI. It has, however, been clarified that this stipulation will not be applicable to investments made in the initial public offers of the companies or firm allotment in public issues where all the regulatory requirements and formalities pertaining to public issues have been complied with by the companies and where the mutual funds are required to pay just before the date of public issue.
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