Nippon Life India Asset Management recorded a ₹96.76 crore payment tied to mutual fund investments in Yes Bank Additional Tier 1 bonds as an exceptional item, while the regulator’s final decision remained outstanding.
In its Q2 FY27 results filing, the asset manager said the Securities and Exchange Board of India (SEBI) had given preliminary approval to proposed settlement terms during the quarter ended Sept. 30, 2026. SEBI had not issued the formal order, the filing said.
The total included ₹89.08 crore for reversing management fees earned from the investments, with applicable interest included in that figure. Another ₹7.68 crore covered settlement payments involving the company and certain officials. Nippon Life India recorded the full sum as an exceptional item in its results for the quarter and half year ended Sept. 30.
Consolidated net profit after tax and share of profit in an associate was ₹324.37 crore, down from ₹344.64 crore in the year-earlier quarter, the filing showed. The company’s results came alongside the interim dividend approval covered in EconoTimes’ earlier dividend and earnings report.
In its FY2024-25 annual report, Nippon Life India said SEBI’s Aug. 30, 2024, show-cause notice alleged securities-law violations connected with some schemes’ holdings of the bonds. The company and certain officials applied for settlement on Oct. 28, 2024, the report said. Their applications were filed “without admitting or denying the findings of fact and conclusions of law,” it added.
On Oct. 15, 2026, the Supreme Court of India rejected challenges brought by Yes Bank, the Reserve Bank of India and the Union government. Its decision kept in place a Bombay High Court ruling that overturned Yes Bank’s March 2020 write-down of ₹8,415 crore in AT1 bonds. The Supreme Court said annual coupon payments were unaffected. That dispute concerned the bank’s write-down; Nippon Life India’s pending matter concerns SEBI proceedings over mutual fund investments.
The company said it was awaiting SEBI’s order and gave no date for its issuance.
