Finance Ministry Asks SEBI To Withdraw Directive On Tenure Of AT1 Bonds

The finance ministry has asked market regulator SEBI to withdraw its directive to mutual fund houses to treat additional Tier I (AT-1) bonds as having a maturity of 100 years as it could disrupt the market and impact capital raising by banks. AT-1 bonds are considered perpetual in nature, similar to equity shares as per the Basel III guidelines. They form part of the tier I capital of banks.

Source- Financial Express

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