Valuation of securities:
RBI has issued guidelines for valuing both the quoted and unquoted securities.
Valuation of Quoted Securities:
The market value for the purpose of periodical valuation of investments included in the Available for Sale and the Held for trading categories would be the market price of the scrip from any of the following sources:
• Quotes/Trades on the Stock exchanges
• SGL Account transactions
• Price list of RBI
• Prices declared by Primary Dealers Association of India (PDAI) jointly with FIMMDA
Valuation of Unquoted SLR Securities:
Central Govt. Securities should be valued on the basis of the prices/ YTM rates put out by the PDAI/ FIMMDA at periodical intervals. The 6.00 per cent Capital Indexed Bonds may be valued at “cost” and Treasury Bills should be valued at carrying cost.
State Government securities as well as the other approved securities will be valued applying the YTM method by marking it up by 25 basis points......
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