Domestic equity benchmark BSE Sensex plummeted over 500 points or by 1.29 percent to close at 38,593.52 on Wednesday, 25 September. The Nifty50, on the other hand closed 157 points lower at 11,440.20, a fall of 1.28 percent.
Meanwhile, the rupee, while extending losses, traded near day's low of 71.10 against dollar around 2: 30 pm on Wednesday. After opening at a low of 71.07 per dollar compared to the previous closing figure of 71.01, the Indian currency touched an intraday low of 71.13 per dollar, Moneycontrol reported.
In order to bring uniformity and consistency in valuation, market regulator Sebi has asked mutual fund houses to follow "waterfall" approach for the valuation of money market and debt securities, a PTI report said on Wednesday.
Under this approach, all traded securities would be valued on the basis of traded yields, subject to identification of outlier trades by the valuation agencies.
Besides, the regulator has come out with a framework relating to valuation of inter-scheme transfers and barred the use of own trades for valuation.
Further, the regulator said a money market or debt security will be classified as "below investment grade" if the long-term rating of the security issued by a credit rating agency (CRA) is below BBB- or if the short-term rating of the security is below A3.
Earlier during the day, Sensex sank over 300 points in early session, dragged by losses in banking, IT and auto stocks amid negative global cues and foreign fund outflow.
The 30-share index was trading 303.70 points, or 0.78 percent lower at 38,793.44 around 9:30 am, while the broader Nifty fell 92.70 points, or 0.80 percent, to 11,495.50.
(With inputs from PTI and Moneycontrol)
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