MFs may be required to sell HDFC Bank shares worth Rs 4,500 crore following a merger

16 Jun 2023 , 02:07 PM

As the merger of HDFC and HDFC Bank is around the corner, mutual funds need to offload shares of worth Rs 4500 crore post-merger to meet the SEBI cap of 10% exposure to single stock.

Being a top bluechip company, shares of HDFC Bank and HDFC are held by almost all the mutual fund schemes. As per the news reports, markets regulator, Securities and Exchange Board of India is not in the favor of providing a special dispensation to fund houses to exceed the 10% cap.

Around 60 mutual fund schemes collectively hold shares worth Rs 4,500 crore that exceed SEBI’s prescribed limits. Following the merger, SEBI will provide a one-month window for portfolio adjustment if the exposure exceeds the single-stock limit. 

Notably, Mirae Asset Large Cap has the highest excess exposure of Rs 1,200 crore, followed by HDFC Top 100 and Axis Bluechip with exposures of Rs 710 crore and Rs 460 crore respectively, as per Morningstar India data.