Japanese investment bank Nomura Holdings has officially denied a Bloomberg News report claiming it is probing its India fixed-income business over alleged profit inflation.
Bloomberg had reported that Nomura asked senior officials in its rates division to review whether profits were inflated in recent years. However, Nomura clarified that no such investigation exists.
“We categorically deny that there is any investigation by compliance into issues described in this article. Nor have any such issues been identified in routine reviews of the STRIPS business,” Nomura told Reuters.
Understanding STRIPS Trading
STRIPS (Separate Trading of Registered Interest and Principal Securities) allows investors to buy and sell principal and interest components of bonds independently. In June 2025, the Reserve Bank of India approved STRIPS trading for state government bonds, expanding market options for investors.
Bloomberg’s report suggested that STRIPS trading has recently attracted scrutiny due to concerns over accounting practices that may overstate profits. However, Nomura emphasizes that their internal compliance checks have not flagged any such issues.
Nomura’s Statement
Nomura’s firm denial reassures investors and the market that its India fixed-income unit remains under regular review with no evidence of profit inflation or compliance violations.
