Withdraw directive on AT-1 bonds, SEBI told

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 maturity of 100 years as it could disrupt the market and impact capital raising by banks. SEBI had earlier this week issued regulations that put a limit of 10% for cumulative investments by MFs in Tier I and Tier II bonds. pti It also clarified that the maturity of all perpetual bonds should be treated as 100 years from the date of issuance for the purpose of valuation.