Capital regulator on Monday stated, the valuation of market-linked debentures will be carried out by an agency appointed by mutual fund industry body Association of in India (Amfi).

The issuer of structured market-linked debentures (MLDs) will have to hire the agency for the value of such products.

The regulator made changes because of correction done in rating agencies’ norms, said in a circular.

In norms, the issuer of structured MLDs needs to hire a third-party valuation agency which will be a credit rating agency (CRA) registered with for carrying out valuation of MLDs. Pursuant to an amendment to Sebi’s rating agencies regulation on May 30, 2018, a CRA cannot carry out any activity other than rating of securities post May 30, 2020. Accordingly, the regulator has decided that valuation of MLDs will be carried out by an agency appointed by for the purpose of carrying out valuation.

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