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.
Trade policy / exports
Commerce minister Piyush Goyal said on 22 October 2026 that India’s proposed free-trade agreement with the European Union could become operational within four to five months after signing, with the deal expected to be inked before year-end during his visit to Germany.
Food delivery / quick commerce
Swiggy reported on 22 October 2026 that September-quarter revenue rose 36% to about ₹7,571 crore and the consolidated net loss narrowed to ₹922 crore, as food delivery posted record adjusted core profit of about ₹349 crore while quick-commerce Instamart lost about ₹764 crore at the segment level amid heavier discounting and 69 new dark stores.
Quick-service restaurants / consumers
KFC and Pizza Hut operator Sapphire Foods India said on 22 October 2026 that September-quarter consolidated restaurant sales rose 20% year on year to about ₹885 crore, with KFC India same-store sales up 14% and adjusted EBITDA margin expanding 100 basis points to 7.1% even as the listed stock remained far below its 52-week high.
RBI / government borrowing
On 22 October 2026, the Reserve Bank of India accepted no bids at the scheduled sale of short-dated government treasury bills, the first full cancellation in about seven months, as investors demanded higher yields amid a bond selloff, oil-linked inflation fears, and expectations of more rate hikes after October’s policy minutes.
For informational purposes only. Not investment advice. Verify with filings and a licensed adviser.