NEW DELHI: Market regulator Sebi on Wednesday ordered the thaw of bank accounts as well as stock and mutual fund holdings of Rana Kapoor, former managing director and CEO of Yes Bank.
Kapoor is currently in judicial custody after being arrested in March 2020 in the alleged Yes Bank fraud case.
The regulator, in March, tied Kapoor’s bank accounts, stocks and mutual funds to collect contributions of more than 1 crore rupee. The decision was made after Kapoor failed to pay the fine imposed on him.
Sebi, in September 2020, fined Kapoor 1 crore rupee for failing to disclose information regarding a transaction by Morgan Credit, which was an unlisted promotional entity of Yes Bank.
By not disclosing the transaction to the board of directors of Yes Bank, Kapoor created an opaque layer between him and the stakeholders and violated the provision of the Listing Obligations and Dislcosure Requirements (LODR) regulation, Sebi said in the order. .
The release order came after the Supreme Court on August 2 suspended the Securities Appellate Tribunal (SAT) order which upheld a Rs 1 crore fine to Kapoor. The stay was subject to payment of Rs 50 lakh by Kapoor.
In accordance with the Supreme Court’s interim order, he deposited the amount, the regulator noted.
As a result, Sebi on Wednesday called on all of the country’s banks and custodians – NSDL and CDSL – “to release the defaulter’s (Kapoor) bank accounts / lockers, demat accounts and mutual fund folios attached where applicable in accordance with to … the attachment notice “.
In February, the Securities and Exchange Board of India (Sebi) issued a formal notice to Kapoor, although he did not pay any dues.
The pending dues, totaling Rs 1.04 crore, included an initial fine of Rs 1 crore and interest of Rs 4.56 lakh and a collection cost of Rs 1,000.
Kapoor is currently in judicial custody after being arrested in March 2020 in the alleged Yes Bank fraud case.
The regulator, in March, tied Kapoor’s bank accounts, stocks and mutual funds to collect contributions of more than 1 crore rupee. The decision was made after Kapoor failed to pay the fine imposed on him.
Sebi, in September 2020, fined Kapoor 1 crore rupee for failing to disclose information regarding a transaction by Morgan Credit, which was an unlisted promotional entity of Yes Bank.
By not disclosing the transaction to the board of directors of Yes Bank, Kapoor created an opaque layer between him and the stakeholders and violated the provision of the Listing Obligations and Dislcosure Requirements (LODR) regulation, Sebi said in the order. .
The release order came after the Supreme Court on August 2 suspended the Securities Appellate Tribunal (SAT) order which upheld a Rs 1 crore fine to Kapoor. The stay was subject to payment of Rs 50 lakh by Kapoor.
In accordance with the Supreme Court’s interim order, he deposited the amount, the regulator noted.
As a result, Sebi on Wednesday called on all of the country’s banks and custodians – NSDL and CDSL – “to release the defaulter’s (Kapoor) bank accounts / lockers, demat accounts and mutual fund folios attached where applicable in accordance with to … the attachment notice “.
In February, the Securities and Exchange Board of India (Sebi) issued a formal notice to Kapoor, although he did not pay any dues.
The pending dues, totaling Rs 1.04 crore, included an initial fine of Rs 1 crore and interest of Rs 4.56 lakh and a collection cost of Rs 1,000.
