Sebi limits MF investments in debt instruments with special features

In a circular, the market regulator said that no MF under all its schemes shall own more than 10 per cent of AT1 bonds issued by a single issuer

The Securities and Exchange Board of India (Sebi) on Wednesday issued curbs on mutual fund (MF) investments in debt instruments with special features such as additional tier-I (AT1) bonds. 

In a circular, the markets regulator said no MF shall, under all its schemes, own more than 10 per cent of AT1 bonds issued by a single issuer. 

Further, at the scheme level, the exposure to such instruments shall be less than 10 per cent of the total assets and less than 5 per cent towards a single issuer. The restrictions will apply to all debt instruments that have special features such as