India’s markets regulator, SEBI, has rejected industrialist Anil Ambani’s proposal to settle charges related to large-scale investments his then-owned Reliance Mutual Fund made in Yes Bank’s additional tier-1 (AT-1) bonds between 2016 and 2019. The case involves ₹21,500 crore in investments that were entirely written off in 2020 after Yes Bank was declared insolvent. Although the mutual fund had been sold to Nippon Life Insurance before the collapse, SEBI’s allegations cover the period when it was under Ambani’s control.
According to SEBI’s findings, these investments were allegedly linked to loans Yes Bank extended to other companies in the Anil Ambani Group, creating a quid pro quo arrangement. The regulator says this caused massive investor losses amounting to ₹18,280 crore and had a “market-wide impact.” Ambani, his son Jai Anmol Ambani, and former Yes Bank CEO Rana Kapoor had sought a no-admission settlement, but SEBI formally turned it down on July 7. The regulator now plans to order them to compensate affected investors, with additional monetary penalties and enforcement actions possible.
The matter has also been escalated to the Enforcement Directorate (ED), which is already investigating other dealings between Ambani’s companies and Yes Bank. Just last month, the ED searched premises linked to the group over an alleged ₹3,000 crore loan siphoning case.
SEBI’s notices claim Ambani and his son were directly involved in the investment strategy, influencing Reliance Mutual Fund through its then CEO Sundeep Sikka and chief investment officer. Evidence cited includes meetings between Ambani and fund executives, as well as emails in which Rana Kapoor described the transactions as part of a “bilateral relationship” between Yes Bank and Ambani’s businesses.
Alongside Ambani, SEBI has also charged Reliance Mutual Fund, senior executives, and its former chief risk officer for their role in the alleged mismanagement. These individuals have filed a separate ₹950 crore settlement application, which remains under review.
