IIFCL Mutual Fund shall adopt the ‘Principles of Fair Valuation’ as provided by SEBI in the Eighth Schedule of SEBI (MF) Regulations so as to ensure fair treatment to all investors including existing investors as well as investors seeking to purchase or redeem units of mutual funds in all schemes at all points of time. Accordingly, the valuation of investments shall be based on the principles of fair valuation i.e. valuation shall be reflective of the realizable value of the securities/assets. The valuation shall be done in good faith and in true and fair manner through appropriate valuation policies and procedures.

The asset management company shall review the valuation policies and procedures once annually, to ensure the appropriateness and accuracy of the methodologies used and its effective implementation in valuing the securities/assets. The Board of Trustee and the Board of IAMCL shall be updated of these developments. The valuation policies and procedures shall be reviewed at least once in a Financial Year by an independent auditor to seek to ensure their continued appropriateness.

The valuation policy and procedures approved by the Board of IIFCL Asset Management Company shall be made on the website of the Asset Management Company /mutual fund and at any other place where SEBI may specify to ensure transparency of valuation norms adopted.

The responsibility of true and fairness of valuation and correct NAV shall be of IIFCL Asset Management Company, irrespective of disclosure of the approved valuation policies and procedures i.e. if the established policies and procedures of valuation do not result in fair/ appropriate valuation, the asset management company shall deviate from the established policies and procedures in order to value the assets/ securities at fair value, provided that any deviation from the disclosed valuation policy and procedures may be allowed with appropriate reporting to Board of Trustees and the Board of IIFCL Asset Management Company and appropriate disclosures to investors.

Documentation of rationale for valuation including inter scheme transfers shall be maintained and preserved by IIFCL Asset Management Company to enable audit trail.

In order to have fairness in the valuation of debt and money market securities, IIFCL Asset Management Company shall take in to consideration prices of trades of same security or similar security reported at all available public platform.

In case of any conflict between the Principles of Fair Valuation and Valuation Policy issued by IIFCL Asset Management Company Limited, the Principles of Fair Valuation shall prevail.