Mutual funds (MFs) and other lenders with an exposure to debt papers are feeling the heat as nearly Rs 7.5 trillion worth of corporate papers have been downgraded between September 2018 — when a series of defaults by IL&FS group companies began — and March 2019, according to data collated from the Securities and Exchange Board of India (Sebi).
This is four times the value of the downgraded papers in the previous seven months. However, it could not be ascertained whether the Sebi data adjusted multiple downgrades of the same security.
“There has been stress in large accounts in recent