Nippon AMC Pays ₹96.76 Crore To Settle SEBI Proceedings Over Yes Bank AT-1 Bond Investments, Awaits Final Order
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Nippon AMC paid ₹96.76 crore to settle SEBI proceedings over Yes Bank AT-1 bond investments. The company reported lower quarterly profits and approved an interim dividend of ₹9.50 per share.
Nippon Life India Asset Management has paid ₹96.76 crore to settle regulatory proceedings linked to investments in Yes Bank’s additional tier-1 (AT-1) bonds by certain mutual fund schemes. The company disclosed the payment in its September-quarter results on 22 October 2026. The final settlement order from the Securities and Exchange Board of India (SEBI) is awaited.
Why SEBI Initiated Proceedings Against Nippon AMC
The settlement covers ₹89.08 crore, including applicable interest, towards reversing management fees earned on the investments. A further ₹7.68 crore relates to amounts payable by the company and certain officials named in the proceedings to settle the matter.
SEBI issued a show-cause notice on 30 August 2024. It alleged violations of securities laws concerning investments made 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 to settle the matter without admitting or denying the findings of fact or conclusions of law. During the September quarter, SEBI communicated its in-principle acceptance of the proposed settlement terms.
Nippon Life India Asset Management classified the ₹96.76 crore payment as an exceptional item in its quarterly and half-yearly financial results. The company said it was awaiting further communication from SEBI. Based on its current assessment, it does not consider an additional provision necessary.
Supreme Court Ruling On Yes Bank AT-1 Bonds
The development follows the Supreme Court’s dismissal, on 15 October 2026, of appeals against a Bombay High Court judgment dated 20 January 2023. The High Court had set aside the March 2020 write-off of Yes Bank’s AT-1 bonds.
Axis Trusteeship Services, the debenture trustee, represented bondholders, including the relevant Nippon India Mutual Fund schemes. Nippon Life India Asset Management said any recovery resulting from the judgment would go to the unitholders of the affected schemes. Such a recovery would not affect the company’s financial results.
Nippon AMC Q2 Results: Profit Falls 35.6% Sequentially
Nippon Life India Asset Management reported consolidated net profit of ₹324.4 crore for the quarter ended 30 September 2026. This represented a 35.6% decline from ₹503.7 crore in the June quarter.
Revenue from operations rose 3.8% quarter-on-quarter to ₹795.8 crore, compared with ₹766.9 crore in the previous quarter. Total income rose 17.9% year-on-year to ₹818.9 crore, compared with ₹694.7 crore in the corresponding period a year earlier.
The company’s board also approved an interim dividend of ₹9.50 per equity share. The record date for determining eligible shareholders is 28 October 2026.
Nippon Life India Asset Management shares closed at ₹968.90 on 22 October 2026. The stock fell 3.11%, or ₹31.10, during the session.
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This article is for informational purposes only and should not be considered investment advice from Kotak Neo. For compliance T&C and disclaimers, Visit www.kotakneo.com/disclaimer
Vishwa has spent 10+ years across fintech and FMCG doing what most people miss, connecting the dots, catching trends before they trend, and finding the angle nobody else thought to ask about.
At Kotak Neo, she drives content strategy for neoshorts, Kotak News Desk, and Investing Guide, turning market noise into something worth reading.
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