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Nippon AMC restricts Yes Bank subscription to Rs 2 lakh, marks down value to zero

Nippon AMC took the decision due to the lack of information and understanding on how regulations and decisions of RBI and the government of India will pan out for Yes Bank.

March 06, 2020 / 10:40 AM IST
 
 
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Nippon Life India Asset Management Company, in a note to investors, has said it has marked down the value of Yes Bank to zero and restricted the subscription limit to Rs 2 lakh per investor in the schemes that have exposure to the private lenders’ bond.

"Perpetual bonds of Yes Bank in the schemes of NIMF have been marked down to zero. The valuation adjustment reflects the uncertainties around the realisable values but does not in any manner indicate any reduction or write off of amount repayable by Yes Bank or eventually realisable by the schemes holding these instruments," the note said.

Nippon AMC has limited fresh inflows in the scheme to Rs 2 lakh per day per scheme per investor till further notice. This limit is imposed only on the new applications, switch-ins, systematic transfer plans and systematic investment plans received after March 5, it said.

Nippon AMC took the decision due to the lack of information and understanding on how regulations and decisions of the RBI and the government will pan out for Yes Bank.