``The uniform methodology for valuation of non-traded debt securities has already been developed in association with Crisil, a research body and will be applied by all the mutual funds from April 1 on a trial basis,'' Association of Mutual Funds of India chairman a P Kurian said. ``The same was despatched to various mutual funds across the country for their consideration two months back and after receiving their response and suggestions, we will introduce a uniform software for the same,'' he said.

We will also try to get this new methodology approved by the Securities and Exchange Board of India (Sebi) and thus make it mandatory by October 1 this year, he added. At present, different mutual funds are following different methodologies for valuing these non tradable debt securities, in the absence of any market quotations. AMFI has recommended theusage of yield to maturity method with due weightage to the risk associated with the security to be valued, which is the best possible method, according to industry sources. This will also be followed by a uniform method for valuation of non traded or infrequently traded equities, Kurian said adding a committee had already been set up for the purpose.