Sebi had imposed a penalty on Yes Capital (India) and Morgan Credits in March 2021 for not disclosing necessary information related to the pledged shares.
Rana Kapoor
The Security Appellate Tribunal (SAT) upheld the regulator SEBI’s order imposing a fine of Rs 1 crore on Rana Kapoor, former chief executive officer (CEO) of Yes Bank and Rs 50 lakh each on two other entities. is. The Securities and Exchange Board of India (Sebi) had penalized both the entities – Yes Capital (India) Pvt Ltd and Morgan Credits Pvt Ltd… in March 2021 for not disclosing necessary information related to the pledged shares to the public.
In September 2020, SEBI had imposed a penalty of Rs 1 crore on Kapoor for non-disclosure in respect of Morgan Credits transactions. The regulator, in its order, had said that Kapoor created an opaque relationship between himself and the parties concerned by not providing information about the transaction to the board of directors of Yes Bank.
Deal done with the intention of impressing Yes Bank
The appellate tribunal, in its order issued on June 18, said that there is no point in interfering with the amount of fine. SAT said Kapoor had given a personal guarantee for Morgan Credits’ transactions. That said, these transactions are definitely in the nature of directly affecting the listed entity i.e. Yes Bank. Therefore, in order to promote a culture of good decision making, it was necessary for the appellant to inform the Board of Directors of the listed company YES BANK about the transaction. The appellate tribunal said, we do not see any such reason for reducing the amount of fine. Hence the appeal is dismissed.
This step was taken to collect the fine
SEBI has ordered confiscation of all bank accounts, shares, mutual funds and lockers of Rana Kapoor to recover a fine of more than Rs 1 crore. The regulator had imposed a fine on Kapoor, which he failed to pay. SEBI said, there is sufficient reason to believe that the defaulter (Kapoor) may settle the amount/income of the accounts maintained with your bank and the recovery of the amount under the certificate shall result in delay or obstruction.
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