MFs may stay away from perpetual bonds in long run

Mumbai: Mutual funds, hitherto major buyers of perpetual bonds, could stay away from buying new issuances or existing papers that would have a call maturity beyond March 2023 after the Securities and Exchange Board of India’s revised guidelines still left a gap between the suggested and market valuations of these instruments. “New perpetual bond issues will have to seek a new set of buyers as mutual funds may stay away from additional purchases