Unlocking Clarity in Complex Investments
Principal Protected Market Linked Debentures (PPMLDs) emerge as unique instruments, blending the security of debt with the dynamic potential of equities. These instruments safeguard the principal amount against downturns while offering an upside through performance-linked coupons, often tied to equity indices.
Recognizing the challenge investors face in comprehending these hybrids, SEBI mandates AMFI-appointed valuation agencies have solutions to conduct unbiased and independent valuations. These estimates go beyond the restrictions of the investor, revealing the full value of these structures and facilitating wise investment decisions.
The Need for Valuations- A Dual Advantage
PPMLD valuation services streamline resource allocation within organizations and go beyond simple numerical evaluations. The SEBI guideline acknowledges the necessity for correct evaluations by pointing to the distinctive risk-return profiles these instruments exhibit. Investor trust is increased by objective, third-party valuation views provided by CARE Risk Solutions, which digs deep to find value within complexities.
Methodology-From Complexity to Clarity
The valuation process orchestrates the art of portfolio management and the precision of analytics. Employing the Local Volatility Method, we harness the analytical prowess of Numerix Portfolio software, culminating in an approach validated and accepted by industry peers. By adopting a simulation-driven approach, we distill multifaceted scenarios into tangible valuations. Armed with data from esteemed providers such as Super Derivatives, FIMMDA, and Issuers, our methodology paints an accurate picture of PPMLD worth, empowering both investors and issuers with the insights they seek.
Regulatory Recognition
- CARE Risk Solutions is “AMFI recognised Valuation Agency” for the purposes of providing valuation services for MLDs.
Independent Opinion
- CARE Risk Solution (Wholly owned subsidiary of CARE Ratings ltd) has over 15 years global experience in providing cutting edge Risk & Compliance solutions to Banks and Financial Institutions
Team Capability
- Analyst team of CARE Risk Solutions includes qualified and multifaceted professionals from diverse backgrounds such as chartered financial analysts, chartered accountants, engineers, economists and financial risk managers.
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