AMFI works on provisioning bad debt in mutual fund
May 07 2019
News Category: Regulatory Updates
According to media reports, Association of Mutual Funds in India (AMFI) lately introduced a guideline on dealing with writing down of debt papers. The recent defaults and downgrades triggered the mutual fund nodal association to standardise bad debt provisioning for mutual fund houses. Presently, AMC adopts in-house methods to write-off debt papers, which leads to inconsistent valuation of the same security.