Passive breach in HDFC-HDFC Bank: MFs to offload Rs 5,000 crore shares

However, experts do not see much of an impact on the stock prices as the HDFC twins are highly liquid names and will be able to absorb the selling pressure

The impending merger between HDFC Bank and Housing Development Finance Corporation (HDFC) will see around 60 actively-managed equity mutual fund (MF) schemes breach the 10 per cent single stock exposure norm.

The passive breach will require fund managers offload shares worth Rs 5,000 crore in the merged entity up as actively-managed schemes can deploy a maximum of 10 per cent of their corpus towards a single stock. Given the prominence of HDFC twins, most fund houses have large exposure to these counters.

According to a news report, the Securities and Exchange Board of India is not in favour of providing