Nippon Life India MF, formerly known as Reliance Mutual Fund, is already under the CBI scanner for investing Rs 950 crore in non-convertible debentures (NCDs) of Morgan Credit Private Limited, a company owned by the Rana Kapoor family.
Sebi's allegation of a quid pro quo are significant and the regulator has sought an explanation from Nippon Life India MF as to why the management fee of Rs 88.60 crore that the AMC earned should not be disgorged, along with a possible debarment for an 'appropriate period'.
The CBI probe is part of a larger multi-agency investigation, which includes the SEBI as well. The agencies are examining cumulative investments worth around Rs 2,850 crore made by firms formerly owned by Reliance Capital in AT1 bonds issued by Yes Bank.
On March 22, 2019, the bank had raised Rs 1,251 crore through Basel-III Additonal Tier-I bonds at a coupon rate of 9.45%