Prudential investment limits for instruments such as Additional Tier I (AT-I) bonds and Tier 2 (AT-II) bonds

SEBI issued a circular on the Review of Norms regarding Investment in Debt Instruments with Special Features and the Valuation of Perpetual Bonds on March 10, 2021. Perpetual bonds or Additional Tier I Bonds are issued without any maturity date but are usually issued with call option(s) and qualify for Tier I capital. Banks have been the majority issuers of perpetual bonds.