Nippon Life India Asset Management (NAM) on Friday said the company and its executives are constantly working alongside its legal advisors to assist the Securities and Exchange Commission of India (Sebi) market regulator with any queries in the matter relating to the asset manager’s investment. In Yes Bank AT1 bonds.
Sebi launched an investigation into the NAM’s investment in bonds – formerly known as the Mutual Credit Fund – which was influenced by its former promoter Anil Ambani Reliance Capital led by Reliance Capital. NAM has invested Rs 2,500 crore in Yes Bank AT1 Bonds.
“Sebi has requested from the Company and its executives certain information in connection with the above investment in addition to information relating to certain third parties, as may be available with us,” NAM said in a statement.
According to reports, NAM CEO Sandeep Seka is also under scrutiny for Sebi’s role.
AT bonds are perpetual bonds with no maturity date. Yes, the bank’s AT1 bonds were reduced to zero in March 2020 as part of the government’s approved restructuring plan for the insolvent lender. This has resulted in losses for many investors.
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