Yes Bank to skip payment of interest on bonds

This is a glaring example of "Divide & Rule basis " operating in Financial Services market in India. When YES Bank toppled, to assuage the widespread panic RBI put its foot by taking over the Bank,appointed Arbitrator,Called upon LIC,SBI to bail out the ailing bank,quickly written off AT1 bonds of few thousand crores. But in Mutual Funds plagued with Credit ratings downgrades too often and too frequent of various Corporate papers, SEBI & RBI acted when things actually went out of hand. Unless this Black Swan event happened we could have enjoyed looking the other way and not taking adequate steps to clean the mess in so called Fixed Income product . Now part of us are caught in the fight of Swadeshi & Bideshi clamour. RBI not allowing YES bank to pay interest on Bonds issued to institutions like Mutual Funds and Insurance Companies will only further delay in getting back money parked in segregated Portfolios.