The Securities and Exchange Board of India vide its notification dated 13th July 2020 has amended its earlier guidelines on Issue and Listing of Structured Products/ Market Linked Debentures in which it specifies that issuer of MLDs shall appoint a third party valuation agency which shall be a Credit Rating Agency (CRA) registered with SEBI for carrying out valuation of MLDs.
However, based on the amendment to SEBI (Credit Rating Agencies) Regulation, 1999, CRA cannot carry out any activity other than the rating of securities post May 30, 2020.
Therefore SEBI has decided that the valuation of MLDs shall be carried out by an agency appointed by AMFI (Association of Mutual Funds in India) for the purpose of carrying out the valuation.
Click here to read the notification.
