Desk note · industry · Mutual funds / credit
On 15 October 2026 Kotak Mutual Fund suspended fresh lumpsum, switch-in, SIP, and STP flows into its Medium Term Fund and Credit Risk Fund after the Supreme Court restored Yes Bank’s written-off AT-1 bonds, which those schemes had held at zero value.
On 15 October 2026, Kotak Mutual Fund told unit holders it would temporarily stop accepting new money into two credit-oriented schemes. Kotak Medium Term Fund and Kotak Credit Risk Fund will not take fresh lumpsum or switch-in subscriptions, and new systematic investment or transfer plans cannot be registered for now. Redemptions and existing SIPs already running are handled under the usual rules unless the fund house issues a further notice. The company linked the step to the Supreme Court judgment that morning, which upheld bondholders and set aside Yes Bank’s 2020 write-off of ₹8,415 crore in AT-1 paper. Those perpetual bonds had been valued at zero in the portfolios after the Reserve Bank of India ordered the write-down during the lender’s rescue.
Asset managers mark distressed bank capital instruments to model prices. When regulators write off AT-1 bonds, NAVs often show no recovery until courts or issuers clarify otherwise. Thursday’s verdict reopened the question of whether those bonds still have economic value and coupon claims. Pausing inflows is a standard risk tool: it stops new investors from benefiting or suffering from a NAV that may need repricing while the fund manager works out fair value, liquidity, and any recovery from Yes Bank. It does not by itself mean the schemes will gate outflows, but it signals that credit-risk funds are not business as usual the day after a landmark court outcome.
If you hold units in either Kotak scheme, read the next few NAV announcements and any side-pocket or valuation updates. If you were about to start an SIP into credit risk, compare other funds’ AT-1 exposure and how they marked Yes Bank paper before the ruling. Fixed-income investors should treat AT-1 and perpetual bank debt as legal contracts, not just yield pick-ups. Watch whether other mutual funds with Yes Bank AT-1 history pause flows, how Yes Bank proposes to service restored coupons, and any Securities and Exchange Board of India guidance on valuing disputed bank capital after court orders.
Telecom / IPO
On 22 October 2026, exchange data showed Jio Platforms’ ₹30,213 crore issue had drawn about ₹3.73 lakh crore of total bids by late evening on Day 2, with the retail portion oversubscribed and market commentators citing diverted cash from other listed stocks during the book build.
SEBI / market infrastructure
On 22 October 2026, the Securities and Exchange Board of India proposed letting stock exchanges and depositories fund core-market and regulator-mandated initiatives without prior approval for each ticket, while keeping board oversight and financial safeguards and inviting comments until 12 November.
E-commerce / food delivery
On 22 October 2026, reporting said Flipkart is testing an internal food delivery product called Eat-in by Minutes with more than 8,000 employees in Bengaluru, using Ekart logistics as it prepares to compete with Zomato and Swiggy in meal delivery.
Digital trust / compliance
On 22 October 2026, eMudhra Ltd said its board will voluntarily withdraw from the global SSL/TLS certificate segment after a key-security incident on eight intermediate certificates, citing compliance cost and weak economics while stressing that other digital-trust services continue.
For informational purposes only. Not investment advice. Verify with filings and a licensed adviser.