Sebi impact: Debt MFs may become more fairly valued in future, say experts

Expect lower returns as Sebi's latest moves curtail fund manager's risk-taking ability

Since the IL&FS crisis broke in September 2018, debt mutual funds have been buffeted by events that have at times caused their net asset values (NAVs) to half within a day. Such volatility has shaken investor confidence and reversed the shift from fixed deposits to debt funds. The Securities and Exchange Board of India (Sebi) came out with a raft of regulatory changes last week aimed at addressing many of these concerns. 

Valuation norms altered, exit load introduced: Earlier, papers of up to 30-day maturity were valued using the amortisation method. Now, all papers will have to be valued on