Cooperating with Sebi in Yes Bank AT1 bond matter, says Nippon India MF

According to reports, Nippon India chief executive Sundeep Sikka’s role is also being examined by Sebi


SEBI | YES Bank | Nippon

BS Reporter  | 

File photo: PTI

File photo: PTI

Nippon Life India Asset Management (NAM) said on Friday that the company and its executives are constantly working along with its legal advisors to assist market regulator Securities and Exchange Board of India (Sebi) on any inquiries in the matter pertaining to the asset manager’s investment in Yes Bank’s AT1 bonds.

Sebi has launched an investigation into NAM’s –formerly known as Reliance Mutual Fund– investment in the bonds, which were influenced by its former promoter Anil Ambani-led Reliance Capital. NAM had made an investment of Rs 2,500 crore in Yes Bank’s AT1 bonds.

Sebi has been asking the company and its executives’ certain information with respect to the aforesaid investment as well as information with respect to certain third parties, as may be available with us,” NAM has said in a statement.

According to reports, NAM’s chief executive Sundeep Sikka’s role is also being examined by Sebi.

AT bonds are perpetual bonds without any maturity date. Yes Bank’s AT1 bonds were written down to zero in March 2020 as part of a government-approved restructuring plan for the insolvent lender. This has led to losses to several investors.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Fri, April 01 2022. 14:04 IST