In a bid to prevent the possibility of manipulation in the prices of securities, especially government securities (G-Secs), the Reserve Bank of India has changed the methodology used by debt market players, including banks and primary dealers, for their valuation.
As per a central bank directive, security/bond valuation will be based on the weighted average price of the last half-an-hour of trading on the last trading day of every quarter against the last traded price earlier. The methodology as to how the bonds are valued is crucial for mark-to-market (MTM) purposes.
As per a central bank directive, security/bond valuation will be based on the weighted average price of the last half-an-hour of trading on the last trading day of every quarter against the last traded price earlier. The methodology as to how the bonds are valued is crucial for mark-to-market (MTM) purposes.
Source- The Hindu Business Line
Static/Current Takeaways Important for NABARD Grade-A Exam 2018-
- Dr Urjit Patel is the 24th Governor of RBI.
- RBI Headquarters in Mumbai.
- RBI was Established on 1st April 1935.
