New Delhi. Nippon India Mutual Fund has come under the scanner of the Central Bureau of Investigation (CBI). According to a Moneycontrol report, the investigation is into the investment of Rs 950 crore by Nippon India Mutual Fund in non-convertible debentures (NCDs) of Morgan Credit Private Limited, a company owned by the Rana Kapoor family.

The CBI probe is part of a larger multi-agency investigation, which also involves the Securities and Exchange Board of India (SEBI). The agencies are investigating the investment of about Rs 2,850 crore made by Reliance Capital's company in AT1 bonds issued by Yes Bank.

There will be no impact on those who invest in mutual fund schemes.
The Central Bureau of Investigation has asked the fund house for a set of documents and information related to the investments made in April 2018. But this will not affect those who invest in mutual fund schemes. Their returns and their services will remain the same as before.

The CBI had sought these documents from Nippon Mutual Fund on December 21. At the time of writing this news, Moneycontrol's email to Nippon India Mutual Fund has not been answered.

SEBI had issued notice in August
In August this year, the country's capital market regulator, Securities and Exchange Board of India, had issued a notice to Nippon Mutual Fund.

What is AT1 bond?
Let us tell you that Additional Tier-1 (AT1) bonds are also called perpetual bonds. These are bonds which do not have any fixed maturity date. These are issued by banks so that they can maintain their capital adequacy.