Yes Bank founder Rana Kapoor. File.
| Photo Credit: PAUL NORONHA
Capital markets regulator SEBI has ordered the defreezing of financial institution accounts in addition to share and mutual fund holdings of Rana Kapoor, former MD and CEO of Yes Bank.
Kapoor has been in jail since March 2020 in reference to the DHFL cash laundering case.
The markets regulator, in July, despatched a discover to Kapoor asking him to pay ₹2.22 crore in a case of misselling the personal sector lender’s Additional Tier-1 (AT1) bonds and warned of arrest and attachment of belongings in addition to financial institution accounts if he fails to make the fee inside 15 days.
This quantity consists of curiosity and restoration prices.
The demand discover got here after Kapoor didn’t pay the superb of ₹2 crore imposed on him by the Securities and Exchange Board of India (SEBI) in September 2022.
Thereafter, in September this yr, the regulator hooked up financial institution in addition to demat accounts together with mutual fund folios of the defaulter.
The launch order got here after the Securities Appellate Tribunal (SAT), by way of a ruling on September 12, granted an interim keep on a SEBI order within the case of misselling the personal sector lender’s AT1 bonds.
Further, the appellate tribunal directed Kapoor to deposit a sum of ₹50 lakh inside six weeks. In compliance with the order, he paid the quantity inside the timeline.
The matter has been listed for a closing listening to on November 20.
In a discover issued to all banks, all mutual funds and depositories — CDSL and NSDL — on Friday, SEBI requested them to “release the bank account(s), locker (s), demat account (s), mutual fund folio (s) of the defaulter (Kapoor) attached”.
The case pertains to the misselling of the financial institution’s AT1 bonds to retail traders by the financial institution’s officers. It was alleged that the financial institution and sure officers didn’t inform traders of the chance concerned whereas promoting the AT1 bonds within the secondary market. The sale of AT1 bonds began in 2016 and continued until 2019.
In its order, SEBI had acknowledged that Kapoor was overseeing the whole operation referring to the secondary sale of AT1 bonds, taking common updates from the group and giving them additional directions to extend the gross sales, thus creating strain on the officers to ramp up the gross sales.
Further, the regulator stated that Kapoor was accountable for acts of misrepresentation or suppression of materials details, manipulation and misselling of AT1 bonds of Yes Bank to particular person traders.
Also, Kapoor pressured officers of the personal wealth administration group to plot a devious scheme to dump the AT1 bonds on hapless clients of Yes Bank, SEBI had stated in its order.
