Banks were specifically advised that they should not be solely guided by the ratings assigned to these securities by the external rating agencies but that they should do a detailed appraisal as in the case of direct lending. Marking-to-market The Indian accounting standards are generally aligned to the International Financial Reporting Standards, though there are some differences.
In India, we are yet to fully adopt  BIS Review 87/2008  7  the marking-to-market requirements as available in the international standards. The Indian standards are relatively conservative and do not permit recognition of unrealised gains in the profit and loss account or equity, though unrealised losses are required to be accounted.