Mumbai, SEBI The Securities Appellate Tribunal (SAT) on Wednesday gave three weeks to the Securities and Exchange Board of India (SEBI) to file its reply in a matter relating to its order on misselling of Additional Tier-1 (AT1) bonds.
Rana Kapoor, former managing director and chief executive officer of Yes Bank Ltd, on Friday filed a petition before the appellate tribunal against the SEBI penalty.
On Wednesday, SEBI sought three weeks’ time to respond, which was allowed by the tribunal.
“The matter will be heard further on December 16,” said a SAT bench headed by Justice Meera Swarup.
In March 2020, the Reserve Bank of India capped the value of Yes Bank’s AT1 bonds. 8,415 crore as part of the restructuring of the private lender, causing huge losses to investors. Several people told the regulator that the bank had sold AT1 bonds as super fixed deposits. This prompted a SEBI investigation between 2016 and 2020 into whether Yes Bank employees and institutional investors, who sold bonds to retail buyers through Yes Bank, violated the prohibition of fraud and unfair trade practices related to securities market.
On September 7, Sebi had imposed a fine on Kapoor. “Keeping in view the large number of investors affected and the volume of sales received through this scheme, this Act is liable to be punished according to the gravity of the violation. We hereby impose a fine of 2 crore on Rana Kapoor,” it said.
Kapoor informed the SAT on Friday that even if the bonds were sold by the bank, investors were well informed about the risks involved. However, when Kapoor was at the helm of affairs at Yes Bank, it was alleged that the bank hid the risk factors associated with AT-1 bonds.
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