MFs have full flexibility on PTCs, no further relaxations needed: SEBI

Recently, the Association of Mutual Funds in India (AMFI), had written to Sebi regarding relaxation relating to valuation of PTCs if underlying loans are given a moratorium.

In the wake of the COVID-19 crisis, mutual funds have been given a granted of relaxations by the markets regulator, Sebi. They have also been allowed full flexibility regarding the valuation of Pass Through Certificates (PTC), including in case of a moratorium on underlying loans, officials said on Sunday.

PTCs are certificates given to investors, including banks and mutual funds, where repayment comes from a basket or pool of underlying loans, usually loans taken by individuals. PTCs are usually issued by NBFCs, through a trust structure.

Officials said the fund houses already have sufficient flexibility under various Sebi regulations on