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Amfi appointed agency to carry out valuation of market-linked debentures: Sebi – The Economic Times

New Delhi: Capital markets regulator Sebi on Monday stated valuation of market-linked debentures shall be carried out by an agency appointed by mutual fund trade physique Amfi.

The issuer of structured merchandise or market-linked debentures (MLDs) may have to rent the agency for the valuation of such merchandise.

The regulator has made these modifications as a result of of modification performed in ranking companies’ norms, Sebi stated in a round.

Under the norms, issuer of structured MLDs want to appoint a 3rd celebration valuation agency which shall be a credit standing agency (CRA) registered with Sebi for carrying out valuation of MLDs.

Pursuant to modification to Sebi’s ranking companies regulation on May 30, 2018, a CRA can not carry out any exercise aside from ranking of securities put up May 30, 2020.

Accordingly, the regulator has determined that valuation of MLDs shall be carried out by an agency appointed by Amfi for the aim of carrying out valuation.

“It shall be mandatory for the issuer to appoint a third party valuation agency which shall be an Amfi appointed valuation agency,” the Securities and Exchange Board of India (Sebi) stated.

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