India’s market regulator, SEBI, has turned down a request from businessman Anil Ambani to settle a case related to investments made in Yes Bank. This means Ambani could face a penalty of at least ₹1,828 crore.
The case involves Reliance Mutual Fund, which was owned by Ambani’s group at the time, investing ₹2,150 crore between 2016 and 2019 in special Yes Bank bonds called “additional tier-1 bonds.” These bonds lost all their value in 2020 when Yes Bank was declared insolvent.
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Reliance Mutual Fund was sold to Nippon Life Insurance in 2019, but the charges are for actions that took place before the sale.
SEBI’s investigation found that these investments were made in return for loans given by Yes Bank to other companies in Anil Ambani’s group. SEBI rejected Ambani’s plea to settle the case without admitting guilt, saying that the fund’s actions had a “market-wide impact.”
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