News

Sebi asks funds to give info on holdings in all unlisted bonds

Sebi asks funds to give info on holdings in all unlisted bonds

The Securities & Exchange Board of India (Sebi) has asked mutual funds (MFs) to share information of all holdings in unlisted bonds — securities which have become untradeable in a frozen bond market where fund managers, grappling with redemption pressure, are struggling to either sell or pledge top-rated liquid papers to raise money.

The capital market regulator has asked the fund industry body to give details — such as the assets under management of schemes holding unlisted non-convertible debentures (NCDs), the various unlisted bonds these have invested in, and the share of such bonds in the scheme.

Last year, MFs were told to lower their investment limit in unlisted NCDs to 15% by March 31, 2020 and 10% by June 30, 2020. However, faced with a risk-averse market and surging bond yields, Sebi, earlier this week, extended the deadline by six months for MFs to comply with the cap on investments in unlisted NCDs.

Top