Nippon Mutual Fund has already initiated a series of steps to handle the situation. To begin with, it has marked down the value of its investments to zero in the case of bonds issued by Yes Bank, especially the perpetual bonds. In addition, Nippon has put limits of Rs.2 lakh on fresh inflows into the impacted schemes to avoid trading in and out of the schemes. These limits will apply to new applications, switch-ins, systematic transfer plans and systematic investment plans received after March 5. Existing ones will continue as they are. Nippon had the largest exposure to the bonds of Yes Bank. As of now, the fund has not done any segregation / side pocketing which is only possible under SEBI defined triggers. Of course, Nippon Fund has said that it will review this decision on regular basis as clarity emerges on this matter. Nippon Fund also confirmed that the limit on new applications, switch-ins, systematic transfer plans, systematic investment plans will ensure that interest of existing unit holders is not diluted in the interim period. That is extremely important as a mutual fund cannot allow traders to make a quick buck at the cost of small and retail investors.