SEBI nod for uniform NAV valuation for MFs

MUMBAI, JUNE 6. The Securities and Exchange Board of India (SEBI) has given its tacit approval to the uniform standards of valuation of net asset value (NAV) by mutual funds proposed by the Association of Mutual Funds of India (AMFI) and asked it to prepare model guidelines based on the proposals, a senior SEBI official said.

The accounting standards committee of the SEBI, set up under Mr. Y. H. Malegam, today reviewed the AMFI proposals and decided to consider the model guidelines prepared by the latter at its next meeting in the first week of July, SEBI Executive Director, Mr. M. D. Patel, told PTI here.

Based on the recommendations of the committee, SEBI had earlier asked the Institute of Chartered Accountants of India (ICAI) to evolve accounting standards on four corporate disclosures related subjects in a bid to improve transparency, he said.

Segment reporting, consolidation of accounts of group companies, related party disclosures and accounting of deferred taxes were the areas on which the regulator has sought accounting standards, Mr. Patel added.

Exposure drafts pertaining to the first three subjects were likely to be issued by ICAI shortly, while that relating to deferred taxes was yet to reach that stage, Mr. Patel said adding SEBI was coordinating with ICAI on these issues.

Valuation of dot.com companies in the context of primary and secondary markets would be discussed at the next meeting of the committee, he said.

- PTI

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