Explanation of how the HDFC Bank HDFC merger would affect equities mutual funds.
HDFC Bank DHFC merger: Following the merging of the HDFC twins, a large number of equity mutual funds will have more than 10% stock exposure in HDFC Bank shares.
According to SEBI regulations, no mutual fund scheme can have more than 10% exposure to a single stock.
HDFC Bank and
announced a successful merger that would take effect on July 1, 2023.