SEBI directs mutual funds to value AT-1 bonds on a yield-to-call basis under Ind AS 113.
India's Securities and Exchange Board of India (SEBI) has directed mutual funds to value AT-1 bonds on a yield-to-call basis, aligning with the principles of market-based measurement under Ind AS 113. AT-1 bonds are perpetual bonds issued by banks, with a call option allowing the issuer to redeem investors after a specific period. This new methodology may increase demand for these instruments and help banks raise core equity capital.
August 05, 2024
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