Nippon Life India to Settle Yes Bank Investment Case

Nippon Life India Asset Management has reached a settlement with regulators in India regarding allegations of fraudulent investment practices involving debt instruments from Yes Bank Ltd. The unit of Japan-based Nippon Life Insurance Co will pay a total of 964.6 million Indian rupees ($10.25 million) to resolve the case.

According to a letter from the Securities and Exchange Board of India (SEBI) dated April 15, the regulator alleged that the fund manager directed customer capital into high-risk bonds issued by the lender. In exchange for these investments, the bank reportedly extended loans to companies controlled by the asset manager's former owner, industrialist Anil Ambani.