Fund managers halt inflows after Supreme Court ruling on Yes Bank bonds

The Supreme Court upheld the quashing of Yes Bank’s Rs 8,415-crore Additional Tier-1 (AT-1) bond write-off in a judgment pronounced on October 15. This ruling followed appeals against a January 2023 Bombay High Court decision that had set aside the write-down. Following the decision, Yes Bank shares fell 14.43% to Rs 18.15 on the stock exchanges. The bank stated it is examining the judgment and its implications and is not aware of any undisclosed information that could explain the movement in its securities.

In response to the ruling, Kotak Mahindra Asset Management and Nippon Life India Asset Management have paused fresh investments as they review how the decision could affect valuations, according to Business Standard IN. The Economic Times - Top News reported that Kotak Mahindra Asset Management Company has placed a temporary hold on subscriptions for two of its mutual fund schemes following the zero valuation of the bonds during the bank's March 2020 reconstruction.

The same outlet reported that Tata Mutual Fund has restricted new investments in its Tata Gold ETF Fund of Fund.

Brief written by urgent.news from Business Standard IN, The Indian Express, The Economic Times - Top News — 3 reports on this story. Machine-written — may contain errors; check the original before relying on it.