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Which institution announced a rule that sought to treat banks’ additional tier 1 (AT1) bonds as having 100-year maturity?
A)
RBI
B)
SEBI
C)
IRDAI
D)
PFRDA

Correct Answer :   SEBI


The Securities and Exchange Board of India (SEBI) issued a circular that sought to treat additional tier 1 (AT1) bonds of banks as having 100-year maturity.
The Finance Ministry has asked SEBI to withdraw this rule, which would make investments in the bonds one of the riskiest. A sell-off in these securities will make it tougher for banks to raise capital. The rules were to take effect form April 2021.

Published On : March 19, 2021
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