Axis Trustee Alleges Yes Bank Sold AT1 Bonds as "Super FDs"

Niharika Tiwari

26.05.2020

Yes Bank will have to grapple with fresh allegation and evidence that indicates how its officials had misled retail investors to peddle perpetual bonds.

Yes Bank will have to grapple with fresh allegation and evidence that indicates how its officials had misled retail investors to peddle perpetual bonds.

Axis Trustee, which represents the bondholders, is understood to have signed a new affidavit to state that the securities — commonly known as additional tier-1 or AT1 bonds — were marketed as ‘Super Fixed Deposits’ by relationship managers (RMs) of Yes Bank. “Along with the new affidavit, the legal counsels of Axis will submit before the court copies of emails from Yes Bank RMs to multiple investors. The investors were given an impression that AT1 bonds were not only risk-free, but also offered a higher return than regular FDs. In fact, RMs advised Yes Bank FD holders to break their deposits and invest the money in AT1 bonds,” an official with one of the institutional investors told ET.

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