Chart of basis of Marked to Market procedure based on type of investments (Unquoted)
| Type of Investment |
Basis of Valuation |
| Unquoted Central Government Securities | Prices / YTM rates put out by PDAI / FIMMDA |
| Treasury Bills | Carrying Cost (acquisition cost plus discount accrued) |
| State Government Securities | By YTM method by marking it up by 25 basis point above Central Government Securities’ Yield as put in by PDAI / FIMMDA |
| Other Approved Securities | By YTM method by marking it up by 25 basis point above Central Government Securities’ Yield as put in by PDAI / FIMMDA |
| Debentures / Bonds | Valued with appropriate mark-up (which would be graded based on rating assigned to the security, and subjected to minimum of 50 basis point) over Central Government Securities’ Yield as put in by PDAI / FIMMDA |
| Bonds issued by State Distribution Companies (DISCOM)under Financial Restructuring Plan | Same as above except that the mark-up would be 50, 75 and 100 basis point, when the liability is with the respective state government, guaranteed by respective state government or not guaranteed by state government, respectively |
| Zero Coupon Bonds (ZCBs) | Present Value (PV) to Face Value (FV) of ZCBs to be calculated by using ‘Zero Coupon Yield Curve (ZCYC)’ with appropriate mark up as per zero coupon spread put out by FIMMDA |
| Preference Shares | Valued with appropriate mark-up (which
would be graded based on rating assigned to the security) over Central Government Securities’ Yield as put in by PDAI / FIMMDA, subjected to an upper cap of redemption value of preference shares |
| Equity Shares | Valued at break-up value without considering ‘revaluation reserves’, if any |
| Units of Mutual Funds | Latest Re-purchase price or NAV and if NAV is not available, at cost |
| Commercial Papers | Carrying Cost (acquisition cost plus discount accrued) |
| Investments in RRBs | Carrying Cost (i.e., at book value) |
| Securities issued by Securitisation Company (SC) / Reconstruction Company (RC) | Lower of redemption Value or Net Book Value (NBV) |
| Venture Capital Funds (VCFs) | For first three years, VCFs may be classified under HTM and subsequently under AFS and valued for Units / Equity / Bonds as per specified norms |
Note: If the debentures/bonds/preference shares are quoted and are transacted within 15 days prior to the valuation date, the valuation adopted as per above mentioned method, should not be higher than the said transaction rate. For further additional elaborate guidance, FIMMDA guidelines in this regard may be referred to.