Indeed, there are taxes applicable to bond investments in India.

The investor’s regular income tax rate applies to interest income from government bonds; no TDS is deducted.

Equally taxed at the standard rate is interest income from corporate bonds. At the applicable rates, the issuing company deducts TDS as well.

In accordance with the holding period, capital gains from the sale of bonds are taxed differentially. Short-term capital gains are incurred on sales occurring within 36 months, subject to taxation at the regular rate, plus any applicable cess and surcharge. It is classified as long-term capital gains and subject to a reduced tax rate if retained for a duration exceeding 36 months.

However, depending on variables such as residency status, income tax classification, and bond terms, the tax treatment of particular bond investments by individuals may differ. For personalized advice, it is prudent to consult with a tax advisor.

How to determine your DP ID and Client ID?

To find your DP ID and Client ID, follow these steps:

1. Contact your Depository Participant: The DP is the entity through which you have opened your demat account. Reach out to your DP’s customer service or support team.
2. Provide necessary details: Provide the required information, such as your name, account number, and any other identification details requested by the DP.
3. Verification: The DP will verify your details to ensure your ownership of the demat account. This may involve sharing personal identification documents or answering security questions.
4. DP ID: Once the verification is complete, the DP will provide you with your unique DP ID. This is a unique identification number assigned to the DP with whom you hold your demat account.
5. Client ID: After receiving your DP ID, the DP will also provide you with your unique Client ID. This identifier distinguishes you as an individual client within the DP’s records.

How will I receive the interest payment?

The interest payment will be deposited into the bank account of the bondholder that is linked to their Demat account in accordance with the predetermined schedule. The interest accrued on the bond will be deposited directly into the bondholder’s designated bank account via this payment. The Demat account facilitates this transaction by acting as an intermediary and conservatory for securities in an electronic format, functioning as a digital repository.

The synchronization of the bondholder’s bank account and Demat account facilitates a streamlined and more expedient interest payment process. The punctual disbursement of interest payments is guaranteed by the predetermined schedule, enabling the bondholder to obtain the accumulated interest at consistent intervals. In general, this configuration streamlines the payment procedure and affords the bondholder a seamless experience, given that the interest payment is systematically deposited into the bank account that is associated with the Demat account.

Once a Bond matures, how do I get my money back?

On the date of maturity, the funds invested in bonds and debentures are automatically deposited into the investor’s bank account. By means of this automated procedure, the investor is guaranteed prompt and trouble-free receipt of their invested capital.

Fixed-income securities, including bonds and debentures, provide investors with a pre-established interest rate. The principal amount is remitted to the investor on or before the maturity date specified. The investment amount is remitted into the investor’s bank account in a streamlined and troubleshootable manner, without requiring any manual intervention. By means of this system, the investor is guaranteed the prompt and trouble-free receipt of their invested capital.

Notably, in order to guarantee the success of the remittance procedure, the investor is required to furnish precise bank account information. In general, investors are able to obtain their investment amount in a timely and effective manner through the automated remittance procedure for bonds and debentures.

When will I receive bond units in my Demat?

The bond units will be expeditiously deposited into your Demat account on the N+1 day, which is the trading day following the confirmation of your order. The bond units will be effectively transferred and credited to your Demat account within a single business day subsequent to the confirmation of your transaction.

The T+1 day may fluctuate in accordance with the exchange and settlement cycle, which are both significant factors to consider. By adhering to this procedure, the purchased bond units are quickly and effectively allocated. Your ownership of the bond units is immediately transferred upon compliance with the T+1 day timeline for the transaction to be executed.

Your dematerialized securities, including bond units, are securely stored in a digital repository within your Demat account. By facilitating the post-order procedure, this arrangement ensures that your bond units are promptly deposited into your Demat account on the subsequent trading day and permits effortless monitoring and transfer.

Where will I receive my interest payment?

The interest payouts from Bonds are credited to the bank account of the bondholder that is linked to their Demat account. This automated process ensures that the bondholder receives their interest payment without any delay or inconvenience.

A Demat account is an electronic account that holds securities, such as stocks, bonds, and mutual funds in an electronic form. It eliminates the need for physical certificates and provides a secure and convenient way to hold and trade securities. By linking their bank account to their Demat account, bondholders can receive their interest payments directly without any manual intervention. This system ensures that the interest payment process is streamlined and efficient, providing a hassle-free experience for bondholders.

It is important to note that the bondholder must ensure that their bank account details are accurate and up-to-date to ensure that the interest payment process is successful. The automated interest payout process for Bonds provides a convenient and efficient way for bondholders to receive their interest payments.

Why Do I need to pay accrued Interest?

Accrued interest is a real cost that can be incurred when trading, especially in the bond market. Interest on a bond that has accumulated since the last interest payment date is called “accrual.”

Bondholders are promised periodic interest payments equal to the coupon rate. If you acquire a bond in the interim between interest payments, the seller has had possession of the bond for a portion of the interest period. Therefore, he is entitled to interest payments for that period.

Accrued interest payment ensures all parties are treated fairly. It takes into account the time value of money by paying the seller the interest they would have received if they had held onto the bond until the next interest payment date.

Accrued interest payments in trading protect both parties by distributing interest proportionate to their respective bond holding periods.

Also read :- Everything You Need to Know About Investor Relations

Why is the yield different from Coupon?

When discussing bonds, the terms coupon rate and yield are two separate ideas.

An investment bond’s coupon rate is the benchmark by which interest payments are calculated on a periodic basis. When the price of a bond and other market considerations are taken into account, yield shows how much money an investor may expect to make. Several factors can cause a bond’s yield to be different from the coupon rate. Any time the market price of a bond is higher than its face value, the yield falls below the coupon rate, and vice versa. The yield rises as interest rates go up and falls when they go down, hence interest rate fluctuations have an effect on the yield.

Bond yields are sensitive to a number of factors, including credit risk and duration. As a result of the time value of money, bond yields for longer maturities are typically greater than those for maturities of shorter durations. Bonds with a higher credit risk have higher yields to compensate investors for the higher probability of default.

The post Everything You Need To Know About Bond appeared first on Republic Aeon.

Debentures are a type of bond, however bonds can come in a variety of forms. A debenture is another name for an unsecured bond.

Unfortunately, this is the American definition of a debenture, which further muddies the waters. A debenture is a type of bond issued in British English and backed by the assets of a firm. The two are synonymous in some nations.

KEY POINTS

• In the United States, a debenture refers to a type of unsecured debt.
• The debenture is the most popular form of bond issued by private companies and public agencies.
• Bonds and bills issued by the United States Treasury are both technically debentures.

Debentures

Debentures, in contrast to more generic bonds, provide a more defined function. Debentures, like bonds, are a form of debt issued by a company to investors in order to finance long-term investments or short-term needs, such as the completion of a specific project or the purchase of new equipment. These debt securities are frequently used by businesses as a source of long-term funding.

Debentures will have a due date and interest coupon rate (which could be variable or fixed). When the time comes to make an interest payment, the corporation will often do so before making any distributions to shareholders.

The corporation has two primary options for making principal repayments on the due date. The payment can be made completely at once or in installments. The corporation will pay the investor a fixed sum annually until the debenture matures; this payment schedule is called a debenture redemption reserve. The debenture’s terms can be found in the supporting paperwork.

Debentures get their name from the fact that the issuer plans to pay back the loans using the revenue generated by the business venture. Debentures aren’t backed by anything tangible. Only the issuer’s good name and credit stand behind them.

Similar to bonds, debentures can either be convertible into shares of the corporation or be nonconvertible. In most cases, investors will accept a little lower return in exchange for a convertible security.

Debentures, which are similar to bonds, can be acquired via a broker.

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Important:-The convertible debenture can be converted into stock, and this feature will serve to dilute the per-share metrics of the stock and reduce any earnings per share (EPS). 

Bonds

The bond is the most widely used form of financial instrument in both the private and public sectors. It represents an obligation of the issuer to the purchaser. Money borrowed from an investor and promised to be paid back at a later period. Throughout the bond’s term, the investor is also paid interest at regular intervals.

The bond market is widely regarded as a safe haven for investors. Corporate or government bonds with a high credit rating are less likely to default. Nonetheless, every bond, including those issued by the federal government or local governments, will have its own unique credit rating.

Bonds, in general, have a guaranteed rate of return and are seen as safe, if unremarkable, investments. As their customers near retirement age, financial advisors typically advise them to raise the proportion of their portfolio invested in bonds.

Special Considerations

Debentures are not necessarily riskier than other bonds just because they lack security. A U.S. Treasury bond and a U.S. Treasury bill are both technically debentures. They do not require collateral yet nonetheless have a zero risk profile.

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Corporate debentures are the most frequent type of long-term debt instrument. To finance an increase in its retail footprint, a corporation may choose to issue bonds to the general public. It anticipates that it will be able to pay the money back with proceeds from future business. An issuer’s bond’s creditworthiness is equivalent to that of the issuing corporation.

Companies and governments can use bonds and debentures to raise capital outside of their regular cash flow.

The post Debenture vs. Bond: What’s the Difference? appeared first on Republic Aeon.

To achieve one’s short-term and long-term financial objectives, good personal finance management is essential. Don’t worry if you have no idea how to manage your money or if you’d like to learn more. The top personal finance books are listed in this post to help you reach your financial goals.

1. The Total Money Makeover (Author: Dave Ramsey)

The Total Money Makeover is a self-help book with numerous real-world examples of individuals who followed Dave’s infant steps and achieved success. The book is one of the best finance books because it contains a great deal of encouraging assistance, suggestions, and advice.

A lack of desire and support to make the necessary lifestyle changes is one of the most significant obstacles to gaining complete control of one’s finances. This is one of the best books on personal finance that can give you a new perspective on your objectives and the rewards you can earn by achieving them.

2. You’re So Money: Live Rich, Even When You’re Not (Author: Farnoosh Torabi)

 This is one of the most significant works by Farnoosh Torabi. She makes the complexities of finance and accounting appear simple. The author emphasises prioritising spending based on one’s greatest aspirations.

This humorous book encourages its readers to fully experience life. This book is the ideal combination of innovative ideas and a bold approach to educating an underserved generation about personal finance. The writing manner of Farnoosh is engaging, direct, and potent. Additionally, she advises readers not to be cheap. As you read, you’ll discover how entertaining it can be to live and expire wealthy.

3. I Will Teach You to Be Rich (Author: Ramit Sethi)

This is one of the finest books on personal finance and a must-read for those aged 20 to 35. It concentrates on strategies for wealth creation in personal entrepreneurship.

This book emphasises primarily on the four pillars of personal finance: banking, saving, investing, and budgeting. It is a practical, step-by-step guide to financial accomplishment. This is the book to choose if you are a millennial.

4. Rich Dad Poor Dad (Author: Robert Kiyosaki)

If you’re looking for a comprehensive guide to personal finance, look no further. It’s the tale of two fathers, one of which had a plethora of credentials yet didn’t finish high school. The father died leaving his son nothing but a mountain of debt despite his extensive education.

The school dropout, on the other hand, bequeathed his son a business empire. This book teaches vital lessons about financial success by illuminating the author’s path to affluence after he abandoned his formal education. 

5. The Millionaire Next Door (Author: Thomas Stanley and William Danko)

This book illuminates the investing approach of savvy investors. It discusses how millionaires are deliberate about generating wealth and live a parsimonious lifestyle. The author analyses the habits of numerous American millionaires who amassed fortunes without generating headlines.

According to the author, the majority of wealthy people avoid flaunting their fortune and prefer to live well below their means. This allows them to amass wealth over time.

6. Your Money or Your Life (Author: Vicki Robin)

This is more than just another book on personal finance. It’s a guide to making your life look the way you want it to. It criticises the practise of materialism, which depletes not just our wealth but also the Earth’s scarce resources.

The book as a whole promotes the idea that cheapness is better and that cutting costs wherever possible would lead to greater happiness. The nine-step plan laid out in this book could be your ticket to financial independence.

7. The Little Book of Common Sense Investing (Author: John C. Bogle)

This book is written by John C. Bogle, founder of the Vanguard Group, the largest ETF company in the world. The author focuses on index investing, stock selection strategies, and investing fundamentals. This book provides guidance on how to implement proven investment strategies into your portfolio.

8. The One-Page Financial Plan (Author: Carl Richards)

The One-Page Financial Plan can help you determine your financial priorities and goals. The simple methods of Carl Richard teach you how to prioritise your life goals and discover how to attain them.

The author has written this book in very simple language, free of complex financial jargon, making it appropriate for all types of readers.

9. You Need a Budget (Author: Jesse Meacham)

The method detailed in this book enables a person to live a little more freely and alleviates the stress associated with a lack of funds. The author’s tried-and-true technique of four fundamental rules aims to transform money management from a crippling burden into a powerful weapon that places the individual in complete control of his or her life.

The book explains how to escape debt and stop living paycheck to paycheck.

10. The Motley Fool. You Have More Than You Think (Author: David Gardner and Tom Gardner)

This book is a resource for anyone endeavouring to strike a balance between their lifestyle objectives and their financial realities. This book uses a humorous tone to convince the reader that investing is not all that difficult.

The beginning of the book urges readers to save money and pay off their credit card debt. The article then briefly discusses a number of fundamental investment concepts, including the fact that mutual funds do not outperform the market average, etc.

Conclusion

We trust that these books, which are some of the best books to read on personal finance, can assist you with your finances. These publications serve as a foundation for budgeting, investing, and saving.

Also Read : Benefits of Holding Stocks for the Long-Term

The post 10 Best Personal Finance Books – Must Read appeared first on Republic Aeon.

Bonds that pay interest on a monthly basis, along with other fixed-income instruments, are common investments for retirees and others who need a reliable source of income to cover their living expenses. This aids them in keeping up with their consistent cash flow. Even people whose salaries, business profits, or pension payments are more than enough to cover their monthly bills will sometimes choose to invest in bonds that pay interest on a periodic basis, such as monthly. The main reasons for doing this are: 

1) Liquidity needs: Cash in hand ensures better liquidity, which is a comforting factor.

2) Low credit risk: Some investors believe such regular payouts lower the loss in the event of a default. As interest is paid each month, it does not accumulate, and to that extent, the money at stake is reduced compared to the interest being payable at maturity.

Bonds with a monthly interest payment option may seem appealing to investors for a number of reasons, but there are some drawbacks to consider. This includes:

Leakages

Investors who receive such payments on a periodic basis may choose to spend the money. This is especially true if the amount received is modest, it is saved in a bank account, and it is used for frivolous purchases. It’s possible the investor lacks the foresight to choose the finest monthly investment options, resulting in the funds being spent haphazardly.

Sub-optimal returns

The total portfolio returns suffer as a result of these leakages. Even if the funds are not used and instead remain in the investor’s savings bank account, they will earn a meagre interest return of around 3%. Bonds may provide much greater returns, so the investor should consider them if he thinks he will not need the money soon. There is a current return of 6.7 percent on one-year corporate fixed deposits of good quality. The portfolio returns would suffer significantly if the money was held in a bank account earning roughly 3 percent interest instead of investing in the initial bond, which earned 8 percent interest per year at monthly intervals.

Compounding

Typically, portfolios consist of long-term investments. They are tasked with growing their capital at a rate faster than inflation. Equities, albeit they outperform inflation, are highly volatile in the short run. Bonds are reliable, but they can’t keep up with inflation. When this occurs, the interest earnings must be invested wisely. The money needs to be invested on a regular basis so that it can earn interest and compound.

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Reinvestment risk

The risk associated with reinvesting is also often underappreciated by investors. Upon receipt of the funds, they will need to investigate potential investment vehicles. They can be as thorough as they like in investigating all of the market’s potential investment vehicles, but they can do little to influence the interest rates that are available at any one time. As interest rates fluctuate over time, investors may be forced to reinvest their earnings at a lesser rate than was originally agreed upon. Interest payments received from a bond paying 8% may need to be invested at 6% if, by the time the interest is paid, interest rates in the economy as a whole have dropped significantly.

Taxes

A taxpayer’s tax rate “slab” is applied to interest income. An annual distribution may make the most sense because most investors would rather pay tax on interest on an accrual basis.

However, debt mutual funds (MFs) are the way to go if the investor wants to put off paying taxes on bond interest. These MFs use the coupon payments from the bonds they own to further invest in the market. Moreover, they provide the control of risks. Debt mutual fund capital gains are subject to taxation at the same rate as interest income, although this tax is not due until the moment the fund’s units are sold. Investors who are astute would wait to cash out their debt fund holdings until retirement, when their income is expected to decrease.

Therefore, if there are no consistent cash-flow needs, a methodical strategy to investing in interest-bearing bonds can aid in the money’s compounding.

The systematic withdrawal plans (SWPs) offered by MF institutions are yet another effective means of generating a reliable stream of income. Here, the investor directs the MF firm to sell a specified number of units from his existing MF investments in order to pay him a specified amount of money. By taking this action, your remaining MF units will keep growing your investment. The tax implications of starting an SWP with equity-focused MF units are significantly more favourable. Capital gains, such as those from the sale of shares, are taxed at more lenient rates than ordinary income.

The post Why bonds that offer interest payments once a month might not be the best investment appeared first on Republic Aeon.

When returns on Asset Class A are high, those on Asset Class B are low, and visa versa. Over time, this causes returns on average to rise. That’s what we call the “umbrella asset” + “sunscreen asset” combination. This advantage occurs as a result of merging portfolios A and B.

Why do people diversify if it doesn’t make sense?

Two distinct forms of risk allow for effective diversification. Unique assets, industries, or topics provide the unsystematic risk. By pooling together assets with either negative or low correlations, this can be lowered to almost nothing. These include things like the possibility of a rise in interest rates or bond yields, the possibility of labor unrest in some sectors, the possibility of a downturn in the commodity cycle, and so on. However, systemic risk affects every type of investment. All investments should be avoided during times of political unpredictability, slowing GDP growth, or increased global geopolitical risk.

The above graph allows us to make three important inferences. To begin, diversification can only be used for unsystematic risk. Diversifying across asset classes does not protect you from systematic risk. Second, even if you successfully diversify your portfolio, you will still be exposed to some degree of unsystematic risk. Unsystematic danger can only be mitigated to a great extent. Finally, increasing the number of assets can only help so much. Beyond that point, all that happens is a replacement of risks, therefore the level of unsystematic risk is also constant.

How to go about the process of diversification..

To reduce your exposure to financial uncertainty, please follow this rational procedure.

Diversify among asset classes

Investing in multiple different types of assets is the first step. This is why a diversified portfolio including stocks, bonds, ETFs, index funds, gold, real estate, overseas assets, etc. is essential. This lowers the risk of your portfolio as a whole by distributing it across a wider variety of investments. The first step in diversifying your portfolio is to decide which asset categories you’d like it to hold.

Diversify within debt based on quality

Next, you should diversify within debt on the basis of asset quality once you have established debt as an asset class and mapped out the total exposure to debt. Investing in risk-free government assets and state government securities both have their benefits and drawbacks. The next level up is corporate debt. You must make a decision as to the appropriate allocation of capital between AAA-rated corporate debt and AA-rated corporate debt. Avoid going below AA if at all possible, as doing so carries a larger default risk along with better rewards.

Diversify within debt based on duration

What do we mean when we talk about duration-based debt diversification? Your liquidity requirements are the key to understanding. Therefore, you should have a mix of both liquid and debt funds in your portfolio. How proportion of a debt fund’s holdings should be longer- and shorter-term investments? That depends on your interest rate forecast. Your choice of diversification mix should be based on the expected negative reaction of long maturity bonds to rising bond yields.

Diversify within equity by Sectors

Capital goods, consumer products, pharmaceuticals, the information technology industry, etc. are all examples of sectors. Each of these fields need its own special characteristics. When the building industry picks up, some materials, like cement and steel, benefit. When interest rates fall, it helps the banking sector and the equities of financial institutions. When the commodity cycle rises, industries like oil and steel profit. Investing wisely in a spread of these markets can help spread your risk.

Diversify within equity by themes

What makes themes distinct from industries? In reality, though, themes can extend to many other fields. Let’s take rate sensitivity as an example. Declining interest rates are good for industries like banking, NBFCs, autos, and real estate. It is important to avoid excessive exposure to any single theme when diversifying by theme. Tractors, motorcycles, fast food, consumer packaged goods, fertilizer, hybrid seeds, and other agricultural inputs all benefit from increased rural earnings. Your strategy for diversification must take this into account.

Diversify by companies

Finally, diversification within firms along a number of different themes is essential. Consider a few examples. Businesses with strong operating margins and asset turnover rates should be merged. Similarly, you should diversify your portfolio by holding both high growth stocks and dividend-paying firms. This synergy will guarantee a beneficial final result.

One of the cornerstones of investment is diversification, one of the simplest and most fundamental ways to mitigate loss. That’s the first step in making a portfolio.

Read Also : TOP 10 FINANCIAL MAGAZINES IN INDIA IN 2023

The post What are the steps to build a diversified portfolio? appeared first on Republic Aeon.

• Bond futures are derivative financial instruments that allow traders to speculate on changes in bond prices.
• Bonds issued by governments or corporations serve as the basis for these derivative transactions.
• Bond futures allow investors to hedge against interest rate fluctuations and make money off of changes in bond prices.
• Bond futures in India are classified as Interest Rate Derivatives and traded on the NSE.

What are the Types of Bond Futures?

In India, bond futures are traded on the NSE, currently on two instruments:

• NBF II (NSE Bond Futures II): These agreements are backed by securities issued by the Government of India (GOI). There are three distinct time frames to choose from: four to eight years, eight to eleven years, and eleven to fifteen years.
• 91DTB – These bond futures are a proxy for the 91-day Government of India treasury bill.

How are Bond Futures Priced?

• NBF II: Futures contracts on NBF II bonds are marked to market and settled at the end of each trading day. The volume-weighted average futures price is used to calculate the cash settlement that occurs each day. The ultimate settlement is also determined in cash and is equal to the bond’s weighted average price.
• 91DTB:When they mature, Treasury notes are redeemed at face value despite being issued at a discount. The investor receives interest on the premium they receive from the issuance price minus the maturity value.

What Factors Influence Bond Futures Prices?

Several factors can impact bond futures prices, including:

• Interest rates: As interest rates change, bond prices and bond futures prices tend to move in opposite directions.
• Economic indicators: Economic data, such as inflation and GDP growth, can influence interest rates and, consequently, bond futures prices.
• Market sentiment: Investor sentiment and expectations about future interest rate movements can also affect bond futures prices.

Where are Bond Futures Traded?

NEAT (National Exchange for Automated Trading) is the NSE’s automated screen-based trading system where bond futures are transacted.

NEAT is an order-driven market that facilitates the trading of bond futures in an open, efficient market.

Why Invest in Bond Futures?

Investing in bond futures offers several benefits, such as

• Hedging against interest rate risk: Bond futures provide insurance against interest rate volatility for investors in fixed-income securities.
• Speculation: Bond prices are susceptible to market fluctuations, which can be used to your benefit.
• Portfolio diversification: You can further spread your investment risk by using bond futures in your portfolio.

What are the Risks Associated with Bond Futures?

Although bond futures could be advantageous, they do have some dangers such

• Market risk: Bond futures are vulnerable to market risk, which means that if the market swings against your position, you could incur losses.
• Leverage risk: Bond futures are leveraged contracts, allowing you to hold a huge stake with a small initial investment. This can accentuate benefits, but it also do the same for drawbacks.
• Liquidity risk: Liquidity risk occurs when bond futures are less liquid than the underlying bonds, making it difficult to sell at the desired price.

Are Bond Futures Right for You?

Bond futures can help control interest rate risks and benefit from the bond market.

Assess your risk tolerance, investment horizon, and market understanding before buying bond futures.

Read Also :What is LTP in the Share Market?

The post A Comprehensive Guide to Invest in Bond Futures appeared first on Republic Aeon.

Yes Bank AT1 Bonds: Yes Bank has got a big blow from the Bombay High Court. Bombay HC’s important decision has come regarding AT1 bonds. HC has considered the court to zero the value of AT1 bonds wrong. Financial technology company 63 moons technologies has given this information in a press release. According to 63 moons, the High Court has rejected the decision of the bank administrator, in which the value of AT1 bonds was reduced to zero. AT1 bonds are bonds with no maturity, but provide good returns to the investors.

Investors accused the bank

The bondholders of Yes Bank challenged the decision of the bank administrator to zero the value of AT1 bonds in the Bombay High Court. The bondholders alleged that the bank employees had misled at the time of sale of these bonds and sold it as a type of fixed deposit. In the event of bank failure, the risk of the value of the bond becoming zero was not mentioned.

The Bombay High court order in the Yes Bank case coming a day before the lender announces its quarterly is just…damn.

This was supposed to be a good news quarter for Yes Bank (NPA cleanup, Closing fund raising).

Terrible luck.

— Vishwanath Nair (@Vishwanath4389) January 20, 2023

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The High Court order can be a big blow for Yes Bank as the liability of AT1 bonds worth Rs 8,415 crore can be revived. Several mutual funds also had exposure to AT1 bonds of Yes Bank. Financial technology company Sixty Three Moons also invested in AT1 bonds worth Rs 300 crore. In March 2020, when the Reserve Bank prepared a plan to bail out the bank, the value of AT1 bonds became zero in it. However, then the argument was given that the investors were aware of the risk.

The post Big blow to Yes Bank from Bombay HC, AT1 Bond investors get relief, decision to zero bond value rejected appeared first on Republic Aeon.