a) Investment in Closed Ended Funds:
Where a bank/DFI owns less than 20% of the closed ended
mutual funds being managed by above referred AMC and
these mutual funds in turn also hold the Capital (Tier-1
& Tier-2) instruments issued by the bank/DFI; the
lower of the following two will be deducted from the
bank/DFI’s Tier-1capital for capital adequacy
purpose.
i. Bank/DFI’s investment in such mutual funds,
or
ii. The mutual funds’ investment in bank/DFI’s
capital instruments
b)
Investment in Open Ended Funds: Where
a bank/DFI owns open ended mutual funds being managed
by above referred AMC and these mutual funds in turn
also hold the Capital (Tier-1 & Tier-2) instruments
issued by the bank/DFI; the lower of the following two
will be deducted from the bank/DFI’s Tier-1capital
for capital adequacy purpose.
i. Bank/DFI’s investment in such mutual funds,
or
ii. The mutual funds’ investment in bank/DFI’s
capital instruments