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Dual Valuation Framework
October 28 , 2025
16 hrs 0 min
13
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- The Pension Fund Regulatory and Development Authority (PFRDA) has proposed a dual valuation framework for government securities in the National Pension Scheme (NPS) and Atal Pension Yojana (APY).
- The proposal suggests using both mark-to-market and accrual or held-to-maturity (HTM) valuation methods for government securities.
- Currently, NPS investments are valued on a mark-to-market basis, which reflects daily market prices.
- The accrual or HTM method recognizes interest income daily while avoiding short-term price fluctuations.
- The dual valuation approach allows pension funds to manage liquid securities actively while holding long-term government securities at stable values.
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