Additional Tier1 bonds and its importance in capitalisation of financial services entities in India
KV Prasad Jun 13, 2022, 06:35 AM IST (Published)
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Summary
AT-1 bonds are regulated by RBI. In India, out of 36 lenders, 20 have no AT1 bonds in their capitalisation—like Yes Bank, Karur Vysya Bank, Federal Bank, City Union Bank and Bandhan Bank. 7 of them have AT 1 bond ratio lower than 1 percent— like Kotak Mahindra Bank, HDFC Bank and ICICI Bank. 9 banks have more than 1 percent at1 capital— like Canara bank, Bank of Baroda and SBI.
Additional Tier-1 bonds have been in focus in India, ever since Yes bank got regulatory approval to write them down. Here is an explainer on what are additional Tier 1 bonds and its importance in capitalisation of financial services entities in India.
Under the Basel 3 framework, banks’ regulatory capital is divided into tier 1 and tier 2 capital. Tier 1 capital is subdivided into common equity (CET-1) and additional tier 1 capital (AT-1). Equity capital is classified as CET-1. Perpetual bonds that satisfy specific conditions stipulated by RBI are classified as AT-1.
Additional tier-1 bonds are unsecured bonds with no pre-determined maturity date. It forms part of a lender’s core capital or commonly known as tier-1 capital.
AT-1 bonds, clubbed under perpetual bonds, do offer a call option i.e. Lenders can repurchase them from the investors. Besides, if banks face bankruptcy or run short on capital, they can dismiss the principal amount and not pay interest. The interest payable to the investors may be either at a fixed rate or at a floating rate.
Earlier, the spread between AT 1 bond and NCD coupon was around 100bps or more; which made people put in money into AT 1 bonds of banks. Issuing banks have the option (subject to conditions stipulated by RBI being satisfied) to recall AT-1 bonds issued by them. However, while the banks are not compulsorily mandated to exercise such call option and have a discretion on whether to redeem the AT-1s or not, the tacit understanding with investors is that the indicated call option will be exercised as scheduled.
However, today, the spread between AT-1 bond yield vs NCDs of the bank has narrowed down to as low as 20bps-30bps.
While earlier, investors had the perception of earning more from AT 1 bonds; post yes bank case, most investors prefer the safer debt instruments. The majority of investments since the inception of at-1 bonds have been made by big corporates, mutual fund entities and high net worth individuals, etc.
The loss absorption through conversion / write-down of AT 1 instruments is triggered when CET falls below a pre-determined threshold of risk weighted assets (RWAS), like it did for Yes bank.
AT-1 bonds are regulated by RBI. In India, out of 36 lenders, 20 have no AT1 bonds in their capitalization —like Yes Bank, Karur Vysya Bank, Federal Bank, City Union Bank and Bandhan Bank.
7 of them have AT 1 bond ratio lower than 1 percent— like Kotak Mahindra Bank, HDFC Bank and ICICI Bank. 9 banks have more than 1 percent at1 capital— like Canara bank, Bank of Baroda and SBI.
AT1 bonds can be from domestic as well as foreign market. Banks with foreign business / presence, may have a part of their at1 capitalisation from foreign market.
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Yes Bank challenges Bombay High Court ruling on AT-1 bond write-off
KV Prasad Jun 13, 2022, 06:35 AM IST (Published)
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The challenge follows an order in which the Bombay High Court set aside the decision to write down these bonds and stated that the bank would have to reinstate them.
Private lender Yes Bank has challenged the Bombay High Court ruling on the write-off of Additional Tier-1 (AT1) bonds worth Rs 8,415 crore, according to a Bloomberg report. The bank has approached the Supreme Court challenging the January 20 order of the Bombay HC. The lender has argued that its administrator, appointed by the Reserve Bank of India (RBI), had the power to fully write down AT1 bonds worth Rs 8,415 crore on March 14, 2020, the report said quoting sources.
The challenge follows an order in which the Bombay High Court set aside the decision to write down these bonds and stated that the bank would have to reinstate them.
The bonds were written off as part of a restructuring plan to rescue Yes Bank in March 2020. The court ruled the decision to write off the bonds and said that it was not a part of the final restructuring scheme and the administrator did not have the authority to make the decision.
“It appears that administrator exceeded his powers and authority in writing off AT-1 bonds after the bank was reconstructed on March 13, 2020,” according to the court order.
Market regular Sebi had imposed a penalty of Rs 2 crore on Yes Bank founder Rana Kapoor in September 2022 for mis-selling AT-1 bonds. It was alleged that the bank and certain officials did not inform investors of the risk involved while selling the AT-1 (Additional Tier-1) bonds in the secondary market. The sale of AT-1 bonds started in 2016 and continued till 2019.
According to Sebi, 1,346 individual investors had invested approximately Rs 679 crore in the AT1 bonds, of which 1,311 were existing customers of Yes Bank and invested approximately Rs 663 crore. Further, 277 customers had existing fixed deposits with Yes Bak and the bank prematurely closed their existing FDs and reinvested an amount to the extent of Rs 80 crore in these AT-1 bonds.
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No provision to convert Yes Bank’s AT-1 bond into equity
KV Prasad Jun 13, 2022, 06:35 AM IST (Published)
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According to multiple people familiar with the development, various proposals to consider the conversion of this nature in the past have not found favour and the Bombay HC ruling does not deal with conversion into equity. Shares of Yes Bank Ltd ended at Rs 18.15, down by Rs 1.65, or 8.33 percent on the BSE.
After the Bombay High Court recently quashed a decision taken by the Yes Bank administrator on March 14, 2020, to write off Additional Tier 1 (AT-1) bonds, sources privy to the developments told CNBC-TV18 that there is no provision to convert the bond into equity.
Yes Bank had written off AT-1 bonds worth Rs 8,415 crore as part of the bailout in March 2020.
According to multiple people familiar with the development, various proposals to consider the conversion of this nature in the past have not found favour and the Bombay HC ruling does not deal with conversion into equity.
Also, sources in the know told CNBC-TV18 that Bombay HC has confined itself to determining whether the decision-making process has been adhered to.
Recently, the court in its judgment said the final reconstruction scheme of Yes Bank issued by the Reserve Bank of India did not cover writing down/off the AT-1 bonds. “The final scheme sanctioned by the Central government did not contain the clause or provision for writing down AT-1 bonds,” the court said.
The court further held that when RBI prepared the draft scheme for reconstitution of the bank, it had invited suggestions and objections and it appears the petitioners had raised objections to the writing down of AT-1 bonds and even suggested their conversion into shares.
“It appears that upon consideration of the objections the Reserve Bank made modification in the draft scheme. It deleted the clause of writing down of AT-1 bonds,” the HC said.
“The Administrator could not have taken such a policy decision of writing down the AT-1 bonds. Nor the RBI had authorized him to do so. The Final Reconstruction Scheme also did not authorise administrator to write off the AT-1 bonds. It appears the Administrator exceeded his powers and authority in writing off AT-1 bonds after the bank was reconstructed on March 13, 2020,” the HC said.
The high court, in its order, noted that the court would not dwell on the aspect of whether writing off the AT-1 bonds was necessary since the matter was fiscal in nature.
“We would not enter into a debate as to whether the AT-1 bonds could have been converted into the shares and or whether they could have been proportionately written down. The court would not possess the necessary expertise of the same,” the judgment said.
“This court would only consider whether the decision-making process has been adhered to and that it was within the competence of the Administrator to write down the AT-1 bonds in the facts and circumstances of the present case,” it added.
The court noted that in May 2012, the RBI issued a master circular providing the procedure to be adopted in writing down the AT-1 bonds and/or the manner in which the same are to be dealt with. The bench, however, stayed its order for a period of six weeks.
The petitions had also sought directions against National Securities Depositories Limited and Central Depository Services to take such steps to reverse the effect of any accounting, entries, noting, write-offs, cancellations, or any other steps that may have been undertaken.
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Punjab National Bank raises Rs 1,971 crore via bonds
KV Prasad Jun 13, 2022, 06:35 AM IST (Published)
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The bank has issued and allotted Basel-III-compliant additional tier-1 (AT-1) bonds at a coupon of 8.50 percent per annum aggregating to Rs 1,971.00 crore on a private placement basis, PNB said in a regulatory filing.
State-owned Punjab National Bank (PNB) on Monday said it has garnered Rs 1,971 crore through additional tier-1 bonds, to fund business growth.
The bank has issued and allotted Basel-III-compliant additional tier-1 (AT-1) bonds at a coupon of 8.50 percent per annum aggregating to Rs 1,971.00 crore on a private placement basis, PNB said in a regulatory filing.
The bank issued 1971 bonds worth Rs 1 crore each, it said. These bonds have been issued to 13 investors, it added.
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HDFC Bank’s $1 billion AT-1 bond at 3.7% tightly priced: Ashish Parthasarthy
KV Prasad Jun 13, 2022, 06:35 AM IST (Published)
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Private sector lender, HDFC Bank, on Wednesday, August 18, fixed the coupon rate of its USD 1 billion Additional Tier- 1 (AT-1) bonds at 3.70 percent per annum. It saw a lot of appetite from overseas investors for the issue, Ashish Parthasarthy, treasurer, told CNBC-TV18.
Private sector lender, HDFC Bank, on Wednesday, August 18, fixed the coupon rate of its USD 1 billion Additional Tier- 1 (AT-1) bonds at 3.70 percent per annum. It saw a lot of appetite from overseas investors for the issue, Ashish Parthasarthy, treasurer, told CNBC-TV18.
“We have not gone to the dollar market since 2013 – that was the last public issue of our dollar bonds, and there is a lot of appetites, we could see, from overseas investors for this fund. So, it’s been good; at one go if you can raise USD 1 billion, it’s extremely good. I don’t think in one issue it’s possible to raise the equivalent of $1 billion from the domestic market,” Parthasarthy said.
On coupon cost, he said, “3.7 percent is the coupon. There would be some additional costs like lawyer and banker fees, etc., but that’s not much; it’s all in dollar cost. Just to note that it is one of the tightest priced AT-1 bonds with a rating from the region, which we get because of where we are rated on the sovereign. It’s an extremely well-priced one. Yes, it’s been raised for India from India. So it will be hedged somewhere in the domestic market; the exchange rate has to be hedged.”
“If the dollar was raised from an overseas branch, where the balance sheet is in dollars, then one wouldn’t have to hedge it, but since we have raised it from India and it will be on the rupee book, so we will need to hedge it,” said Parthasarthy.
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HDFC Bank plans to raise funds via AT-1 bonds from overseas market
KV Prasad Jun 13, 2022, 06:35 AM IST (Published)
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HDFC Bank on Monday said the bank plans to raise capital by additional tier- I (AT1) bonds in the overseas market to fund its business growth. The bank is expected to raise up to USD 1 billion from these dollar denominated bonds.
HDFC Bank on Monday said the bank plans to raise capital by additional tier- I (AT1) bonds in the overseas market to fund its business growth. The bank is expected to raise up to USD 1 billion from these dollar denominated bonds.
“We hereby inform you that the bank had approved the issuing of debt instruments in the form of the notes, subject to market conditions,” HDFC Bank said in a regulatory filing. An offering memorandum (OM) has been prepared and shall be made available to the prospective investors in relation to the contemplated issue of notes, it said.
The notes will not be offered or sold in India under the applicable laws, including the Companies Act, 2013, as amended from time to time, it added. Earlier in April, the bank had informed that it is planning to raise up Rs 50,000 crore during the next 12 months through issuing bonds. “The bank proposes to raise funds by issuing perpetual debt instruments (part of additional tier-I capital), tier-II capital bonds and long-term bonds (financing of infrastructure and affordable housing) up to a total amount of Rs 50,000 crore over the period of the next 12 months through the private placement mode,” HDFC Bank had said.
Perpetual bonds carry no maturity date, so they may be treated as equity, not as debt.
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COVID surge: Banks seek recast scheme extension in meeting with RBI
KV Prasad Jun 13, 2022, 06:35 AM IST (Published)
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Banks raised concerns about a potential rise in the stress levels in the wake of the second wave of COVID-19 infections in a meeting with the Reserve Bank of India today, CNBC-TV18 has learnt. In anticipation of this unforeseen rise in bad loans, several bank chiefs also asked RBI to consider extending the one-time restructuring scheme, according to three people in the know.
Banks raised concerns about a potential rise in the stress levels in the wake of the second wave of COVID-19 infections in a meeting with the Reserve Bank of India today, CNBC-TV18 has learnt. In anticipation of this unforeseen rise in bad loans, several bank chiefs also asked RBI to consider extending the one-time restructuring scheme, according to three people in the know.
The comments came during an RBI meeting with heads of various public and private sector banks through a video conference earlier on Monday. RBI Governor Shaktikanta Das, Deputy Governors MK Jain, M Rajeswar Rao and a few other senior officials of the central bank were present in this quarterly meeting with banks.
“We are worried the second wave (of COVID infections) may further disturb asset quality for all banks, collections are also going to be impacted with lockdowns, but RBI says it’s probably too premature to judge the impact. They told us to wait and watch, and remain prepared,” said the head of a large bank present in the meeting with RBI. “They are fully aware of the situation. We have to see how long the lockdown lasts, how many pockets it is implemented in, how the economic activity is impacted. RBI said it has noted all our concerns, and will do whatever is necessary if it comes to that,” this person added.
“We asked for some relaxations on restructuring. The government has also helped by extending the Emergency Credit Line Guarantee Scheme (ECLGS), so stressed borrowers can take more loans, but some who did not seek recast earlier may need one now. SO we have asked RBI to consider extending the COVID-restructuring scheme by another six months at least,” added another official present in the meeting.
Banks expect the bulk of the additional stress to come from the micro, small and medium enterprises (MSMEs), and the retail book and see a greater need for restructuring permission for such loans. “Corporates may not need more recast help- very few came forward in the first place. But retail borrowers, MSMEs will now need some relaxation so we asked RBI if the scheme can be extended for them,” said the head of a private bank who did not wish to be quoted.
In a research note released earlier today, S&P Ratings said that “systemic risk facing banks in India is likely to remain high in the wake of the second wave of COVID-19 infections and a high proportion of weak loans. This is even though India’s economic recovery and steps by the central bank and the government to cushion the effects of the economic crisis will continue to limit stress on the balance sheets of these banks.” It estimates that Indian banking system’s weak loans are at 11 percent-12 percent of gross loans. We forecast credit losses will decline to 2.2 percent of total loans in the year ending March 31, 2022, (fiscal 2022) and 1.8 percent in fiscal 2023, after staying elevated at an average of 2.8 percent in fiscals 2016-2021.
In a press release on the meeting, RBI said in a statement, “In his opening remarks, the Governor highlighted the recent policy measures taken by the RBI to further support the ongoing recovery while preserving financial stability. In this backdrop, he touched upon the importance of credit flows in sustaining the nascent economic recovery and advised the banks to remain watchful of the evolving situation and continue taking measures proactively for maintaining their business continuity, sharpening business strategies and raising adequate capital for strengthening balance sheets. He also emphasised the need for banks to maintain close vigil on the payments and other IT systems operated by banks and fortifying those for enhanced efficiency and resilience so as to offer seamless and uninterrupted customer service.”
One of the people quoted earlier said that RBI has asked banks to proactively raise additional capital, although it seemed largely satisfied with the current level of provisioning. “They have a number for us- RBI wants banks to raise a large amount of capital, but it is a conservative estimate,” said a person in the know. This person did not reveal the quantum of capital raise estimated by RBI.
The other big area of concern for banks was SEBI’s new rules on Additional Tier-1 bonds. After the latest revision in rules, SEBI mandates AT-1 bonds be priced as 10-year paper for the next one year, 20-year for the next 6 months, 30-year for the following 6 and 100-year from April 1, 2023, onward.
“These new AT-1 rules will hamper our capital raising, so we have asked RBI to consult with SEBI on the same and hopefully provide us some relief,” said one of the persons quoted earlier.
RBI’s press note said that progress in the implementation of COVID resolution framework, outlook on stresses assets, capital augmentation, liquidity scenario, monetary transmission, credit flows to different sectors including to stressed sectors, MSMEs, retail, etc were among the key topics of discussion during the meeting.
Another person present in the meeting added that RBI stressed on the importance of banks investing in IT and payment infrastructure, and also asked banks to ensure credit flows to needy sectors to help with growth revival.
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BOTTOMLINE: SEBI’s revised AT-1 bond rules may still hurt smaller PSU banks
KV Prasad Jun 13, 2022, 06:35 AM IST (Published)
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The Securities & Exchange Board of India has offered a reprieve to mutual funds on pricing of Additional Tier-1 (AT-1) bonds, helping prevent an immediate shock to the system. But there will be repercussions. Before we get there, let’s take a quick look at how the AT-1 bonds goose was cooked.
The Securities & Exchange Board of India has offered a reprieve to mutual funds on pricing of Additional Tier-1 (AT-1) bonds, helping prevent an immediate shock to the system. But there will be repercussions. Before we get there, let’s take a quick look at how the AT-1 bonds goose was cooked.
Too many cooks spoil the broth
A sure way for things to go awry in the financial market is having too many regulators stirring the same pot, especially if each one has different recipes. Fathom this: the Insurance Regulatory Development Authority of India (IRDAI) had many years ago restricted exposure by insurers to AT-1 bonds to 3.5-5.5 percent of their portfolios.
SEBI has only now indicated its caps for the same. Besides, IRDAI classifies AT-1 bonds at the same risk level as equities, so AT-1 bonds can’t be held in debt portfolios. That’s a big one.
In stark contrast, such instruments are held across a plethora of mutual fund debt schemes—like corporate bond, PSU and short-term—many of which have a far lower risk-profile. It isn’t surprising, therefore, that private insurers have a very small exposure to AT-1 bonds, while mutual funds own about 40 percent of all such paper.
The stark variance in norms underscores the inconsistency among financial sector regulators, and begs the question: Why were AT-1 bond norms not uniform?
AT-1 rules and the hierarchy of risks
The big shocker for those in the AT-1 market was the Yes Bank write-down of their value, as part of a reconstruction package. This wasn’t expected and was seen contradicting the long-standing financial principles of risk.
The traditional theory on the hierarchy of risks held that holders of debt with direct charge/security would be paid first in a stress situation. Holders of other debt secured by a floating charge across would be next. Then would come the unsecured creditors, then Tier-2 bond holders, then Tier-1 bond holders and finally, if any money is left to distribute, the equity investors. Yes Bank changed all that, putting equity investors ahead of Tier-1 debt investors.
While AT-1 bond rules do provide for their write-down under severe stress circumstances, what has upset investors is that AT-1 bondholders have got the short-end of the stick, but equity investors have been protected, and the bank continues to function, though with a revamped board and State Bank of India as an anchor investor.
This has raised the possibility that such write-offs could occur even in the case of weaker public sector banks that may need to be rescued in future. Besides, the Government will need to surely recall and pay off any outstanding AT-1 bonds of a bank it plans to divest, as no investor will be willing to take on the risk post-transition.
The mispricing of risks
Bankers point out that globally AT-1 bonds are rated 4 notches lower than a standard paper of an issuer. But in India, most AT-1 bonds were priced just a notch lower, especially for public sector banks. Much of this has now been adjusted by the market say bankers, with the yield on State Bank of India’s paper having risen by about 100 basis points. So, the risks were clearly being mispriced earlier.
As for the pricing of such bonds, globally while the greater risk is priced-in, AT-1 bonds are priced with the call date being assumed as the maturity date. This is also because, in the bond market, a decision not to honour the call is seen as akin to a default. So, any issuer that wishes to maintain its creditworthiness will not renege on the call promise. Besides, there are no benchmarks today for a 100-year bond. The most we can peg to is 30 years or 40 years. Hence, SEBI’s pricing direction seems a little at odds with the market realities.
Coming to the revised valuation norms prescribed by SEBI, unlike earlier where bonds were being priced right away as 100-year, the AT-1 bonds will now be priced as 10-year paper for the next one year, 20-year for the next 6 months, 30-year for the following 6 and 100-year from April 1, 2023, onward.
What this will do surely, is shrink the appetite of mutual funds for any new AT-1 bonds. It will also lead to a re-pricing or re-adjustment of yields at the start of each of the above periods. The final contours and implications on NAV of mutual funds, if any, will be known only once AMFI comes out with its suggested formula. Whatever this may be, though, it could well be out of sync with how other investors in such bonds value them, and that’s the bummer.
Here it is important to note that the Reserve Bank of India (RBI) had reduced the minimum period before call on such bonds to 5 years from 10 years. So, in effect, the implied tenure was reduced. So, most AT-1 bonds today come with a call option after 5 years. Also, most insurers tend to view AT-1 bonds as 10-year instruments for pricing. SEBI’s new formula only muddies the waters further. There is thus a need for a joint regulatory intervention on the subject to ensure there are uniform rules in a market for pricing an instrument, even though portfolio caps and risk recognition norms across segments may vary.
Implications of a demise
Mutual funds that were hoarding AT-1 bonds for higher yields in low duration, low-risk category funds will now have to adjust their holdings and perhaps consider paring exposure (either through upcoming calls or sales). This is bound to lead to tightness in the market and, perhaps, some illiquidity unless other investors like high networth individuals (HNIs) and pension funds lap up such paper.
Even then, the interest is likely to remain limited to only the safest issuers. This could well cut-off the AT-1 bond market as a capital option for most banks. And while most large private banks are savvy at raising equity from the markets, this will likely hurt the second and third-rung public sector banks more, adding to the Government’s pressures on recapitalizing these lending arms.
To give you a sense, the amount outstanding against AT-1 bonds today is about Rs 135,000 crore, according to data compiled by rating agency ICRA, and of this, about Rs 96,000 crore is accounted for by the public sector banks. So, it isn’t a very small pool of capital.
What’s a bigger worry for the Government is that over Rs 23,000 crore of calls will be exercised in the next fiscal and the ability to refinance this through fresh issuances may be greatly curtailed. In fact, here SEBI’s timing of norms seems quite significant, as it would curb any fresh interest by mutual funds in what might have been an otherwise big issuance year.
Source: ICRA
Reverting to the implications, ICRA makes an important point: “In our outlook for banking sector for FY2022, we had estimated the Tier I capital requirements for PSBs at Rs 43,000 crore for FY2022, of which Rs 23,000 crore is on account of call options falling due on AT-I bonds of PSBs…If the market of the AT-I bonds remains dislocated… and the PSBs are not able to replace the existing AT-Is with fresh issuance, this would mean that the PSBs could stare at a capital shortfall… PSBs will have to either curtail their credit growth plans or the recapitalisation burden on GoI could rise”.
Here it is important to recall that the Finance Minister in her Budget speech had said: “To further consolidate the financial capacity of PSBs, further recapitalization of Rs 20,000 crores is proposed in 2021-22.” But far from consolidation, these banks could now be looking at a shortfall. And while State Bank of India could still find takers, whether there will be enough appetite for the remaining Rs 12,000 crore remains a big question.
So, if you thought the AT-1 bond issue won’t have any near term implications, think again. It was not without reason that the Finance Ministry stepped in to intervene in the AT-1 bond valuation matter. Whether it will be satisfied with SEBI’s modification is still unclear.
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Sustaining 10-year govt yield at 6.10% looks difficult in near term: Kotak Mahindra AMC’s Lakshmi Iyer
KV Prasad Jun 13, 2022, 06:35 AM IST (Published)
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The 10-year government yield sustaining at 6.10 percent looks difficult in the near term, said Lakshmi Iyer, CIO-Debt and Head Product at Kotak Mahindra AMC on Tuesday. The view comes after the last bond auction of the current financial year, scheduled on March 26 was cancelled.
The 10-year government yield sustaining at 6.10 percent looks difficult in the near term, said Lakshmi Iyer, CIO-Debt and Head Product at Kotak Mahindra AMC on Tuesday. The view comes after the last bond auction of the current financial year, scheduled on March 26 was cancelled.
“This is not completely priced. The announcement was more of conjecture for the market and after the announcement yesterday, it could mean positive news,” she told CNBC-TV18.
There could be a reasonably good rally in market opening today, Iyer added.
On 10-year government yield’s sustainability, she said, “Sustainability below 6.10 percent immediately may be difficult because it is one-off and then going into April you have supplies again. So sustaining them may be difficult but yes, it could test those levels for sure.”
On the Securities and Exchange Board of India’s (SEBI) new rules on valuing the perpetual bonds, Iyer pointed out, “It is one category of the fraternity, which subscribers to these bonds where you could see tepid response going forward. However, if you see over the past whole week and even starting trading session yesterday, there has been the amount of buying appetite, non-MF volumes are not significantly high but that goes to prove that if credibility or the creditworthiness of the underlying issuer is not a concern, there are takers or buyers for these instruments. That is indeed positive news.”
The glide path is a much-needed respite for the smooth implementation of this circular, she said.
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SEBI amends AT-1 valuation rule, provides staggered maturity timeline to MFs
KV Prasad Jun 13, 2022, 06:35 AM IST (Published)
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Market regulator Securities and Exchange Board of India (SEBI) has amended its rule on AT-1 bonds, in-line with what CNBC-TV18 had first reported on March 19. The regulator has provided a glide path for the implementation of the new rules.
Market regulator Securities and Exchange Board of India (SEBI) has amended its rule on AT-1 bonds, in-line with what CNBC-TV18 had first reported on March 19. The regulator has provided a glide path for the implementation of the new rules.
CNBC-TV18’s Sumaira Abidi, who first broke the story, now explains the details in an accompanying video.
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