Ch.7 · Total Expense Ratio Limits · medium
What valuation method is used for debt securities in NAV calculation?
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EXPLANATION
Debt securities are valued using prices provided by SEBI-empanelled valuation agencies — CRISIL and ICRA. These agencies provide daily prices based on market-traded yields, credit spreads, and rating-adjusted discount rates. All AMCs must use these standardized prices, ensuring consistent and unbiased NAV calculation across the industry for debt portfolios.
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