Sebi orders defreezing of bank, demat accounts, MF folios of Rana Kapoor
The Supreme Court had stayed the Securities Appellate Tribunal (SAT) order on August 2, which had upheld a penalty of Rs 1 crore
Securities Exchange Board of India (Sebi), had ordered de-freezing of bank accounts, share, and mutual fund holdings of former MD and CEO of Yes Bank, Rana Kapoor. In March 2020, Kapoor was arrested in the alleged Yes Bank fraud case and is presently in judicial custody. The markets regulator had imposed a fine of Rs. 1 crore on the former CEO, for not making disclosures regarding a transaction of Morgan Credit, which was an unlisted promoter of Yes Bank in September 2020. This year the regulator had attached bank accounts, shares, and mutual fund holdings of Kapoor to recover dues of Rs 1 crore.
The release order came after Supreme Court’s stay
Sebi in an order said that Kapoor created an opaque layer between him and stakeholders, by not disclosing the transactions to Yes Bank’s board of directors. He had also violated the provisions of LODR (Listing Obligations and Disclosure Requirements) Regulation.
The Supreme Court had stayed the Securities Appellate Tribunal (SAT) order on August 2, which had upheld a penalty of Rs 1 crore, and was subject to payment of Rs 50 lakh by Kapoor.
Sebi had noted that he has deposited the amount and had complied with Supreme Court’s interim order. Following this, the release order came from the market regulator