Nippon India MF: Cooperating with SEBI in Yes Bank AT1 Bond Matter
Moneylife Digital Team 01 April 2022
In a statement isssued on Friday, Nippon Life India Asset Management (NAM) said on Friday that the company and its executives are constantly working along with its legal advisers 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 (additional tier-1) bonds.
 
According to news reports, 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 said in its statement.
 
According to media reports, the capital markets regulator is also investigating whether Reliance Nippon's investment in the lender's AT1 bonds was influenced by the asset manager's former shareholder, Anil Dhirubhai Ambani Group (ADAG). The probe is whether  Sundeep Sikka, chief executive of Nippon Life India Asset Management (formerly Reliance Nippon Life Asset Management), played a direct role in Reliance Nippon's decision to invest in Yes Bank's AT1 bonds and whether that ADAG group influenced such a decision. 
 
AT1 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.
Comments
Ramesh Popat
3 months ago
it must be so. and many other transaction like this one.
but sebi is not interested to probe. this is tip of the iceberg.
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