Tag: Securities & Exchange Board

Markets Regulator, Securities & Exchange Board of India (SEBI) has imposed a penalty of Rs 25 crore on Yes Bank in the case of AT1 bonds. Also, Vivek Kanwar has been fined Rs 1 crore, Ashish Nasa and Jasjit Singh Banga Rs 50 lakh each in this case.

SEBI has issued a 61-page order. In this order, SEBI has ordered this amount to be filled within 45 days.

The order mentions, “SEBI observed that the Noticees had facilitated selling of AT – 1 Bonds of YBL(Yes bank limited) from Institutional Investors to Individual Investors. It was alleged that during the process of selling the AT – 1 Bonds, Individual Investors were not informed about all the risks involved in subscription of AT – 1 Bonds. Therefore, it was alleged that the AT – 1 Bonds were fraudulently sold to the individual investors”

The document added “on account of such misrepresentation and fraud perpetrated on its own customers which lured them and induced them to buy these risky AT – 1 bonds and also induced some of them to alter their position from FDs to these AT1 bonds, such acts have to be viewed seriously. Therefore, I consider a penalty of Rs. 25 Crores(Rupees Twenty – five Crores only) on Yes bank.”