Nippon Life India Asset Management has paid ₹96.76 crore as part of settlement proceedings with the Securities and Exchange Board of India (SEBI) over investments by certain Nippon India Mutual Fund schemes in Yes Bank’s additional tier-1 (AT-1) bonds.
The company disclosed the payment in its September-quarter results on October 22, adding that SEBI’s settlement order was awaited.
The payment comprises ₹89.08 crore, including applicable interest, towards the reversal of management fees earned on the investments, and ₹7.68 crore in settlement amounts for the company and certain officials named in the proceedings.
Why SEBI questioned the Yes Bank bond investments
SEBI issued a show-cause notice dated August 30, 2024, alleging violations of securities laws in connection with investments by certain Nippon India Mutual Fund schemes in AT-1 bonds issued by Yes Bank.
The company and the officials named in the notice applied for settlement without admitting or denying the findings of fact or conclusions of law. During the September quarter, SEBI communicated its in-principle acceptance of the settlement terms.
Nippon Life India Asset Management said it had recognised the ₹96.76 crore payment as an exceptional item in its quarterly and half-yearly financial results. The company added that it was awaiting further communication from SEBI and, based on its current assessment, did not consider any additional provision necessary.
The development follows the Supreme Court’s October 15 dismissal of appeals against a Bombay High Court judgment dated January 20, 2023, which had set aside the March 2020 write-off of Yes Bank’s AT-1 bonds.
Axis Trusteeship Services, the debenture trustee for the bonds, represented the interests of bondholders, including the relevant Nippon India Mutual Fund schemes. Nippon Life India Asset Management said any recovery arising from the judgment would accrue to unitholders of the relevant schemes and would not affect the company’s financial results.
Nippon Life India Asset Management’s Q2 performance
Nippon Life India Asset Management reported a 35.6% quarter-on-quarter decline in consolidated net profit to ₹324.4 crore for the quarter ended September 30, 2026, from ₹503.7 crore in the June quarter.
Revenue from operations rose 3.8% sequentially to ₹795.8 crore from ₹766.9 crore. Total income increased 17.9% year-on-year to ₹818.9 crore from ₹694.7 crore.
The company’s board also approved an interim dividend of ₹9.50 per equity share, with October 28 set as the record date.
Shares of Nippon Life India Asset Management closed at ₹968.90 on October 22, down 3.11%, or ₹31.10, for the day.