The board of directors of PPFAS Trustee Co and PPFAS Asset Management Pvt Ltd has revised the “investment valuation policy” under section-II of debt and debt-related instruments of the fund house with immediate effect, the mutual fund said.
The security type includes government securities and debt instruments with residual maturity less than or equal to 60 days.
Consequently, during the initial purchase, if the residual maturity is more than 60 days, and the security falls below the 61-day bracket period, then the price on the 61st day will be taken for amortisation from the 60th day.
Further, the amortised yield on the 60th day will be compared with the reference yield on the same day, and the spread will be calculated as the difference between the amortised and the reference yield.
Earlier, if the maturity was above 60 days, and the security came below the 61-day period, the spread, if any, at the time of initial purchase was taken as the valuation of security.