Section 22 in The Reserve Bank Of India General Regulations, 1949
22. Valuation of investments .-(i) The investment of the Banking Department of the Bank in securities shall be held in an account styled "Bank's Investments Account" and the securities held in that account shall be valued yearly at rates not exceeding the market rates on the last working day of the month of June each year.
(ii)The investments of the Issue Department in securities shall be valued at rates not exceeding the market rates as at the close of business on every Friday and also on the last working day of the month of June every year, provided that any fall or reduction in the market price of a security may, to avoid petty adjustments, be disregarded if the extent of the fall or reduction is less than two percent of the holding price of the security.(iii)The market rate for the time being obtaining shall be that advised by the Bank's brokers as that obtaining on the valuation day.(iv)In valuing treasury bills of the Government of India or any other Government or bills of exchange the purchase price shall be deemed to be the market price.(v)The items in the account prescribed by the Central Government under section 53 of the Act shall be valued to the nearest thousand rupees.
