Kotak MF suspends subscriptions in two debt funds holding Yes Bank AT1 bonds
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- ✓Kotak Mahindra Asset Management Company suspended subscriptions in two debt funds holding Yes Bank AT1 bonds on Thursday.
- ✓The firm said it acted "as a prudent measure to safeguard the interest of our investors." These bonds were written off in March 2020, but the Supreme Court recently restored their value.
Story at a Glance
- Category
- MARKET
- Reported By
- Economic Times
- Reading Speed
- 2 Minute(s)
- Market Focus
- India Economy
In a move aimed at protecting investors, Kotak Mahindra Asset Management Company has put a temporary hold on subscriptions for two of its mutual fund schemes. This decision follows the zero valuation of Yes Bank AT1 bonds after a significant bank reconstruction in March 2020. Similarly, Tata Mutual Fund has restricted new investments in the Tata Gold ETF Fund of Fund, although existing investments and redemptions will continue uninterrupted.
Kotak Mahindra Asset Management Company (AMC) has temporarily suspended subscriptions in two debt mutual fund schemes holding Yes Bank's Additional Tier 1 (AT1) bonds, as a precautionary measure to safeguard investors' interests.
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Economic Times
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