Yes Bank, 6 others settle case with Sebi for Rs 1.65 crore

Mumbai: Yes Bank and six individuals have settled a case with the Securities and Exchange Board of India(Sebi) by paying Rs 1.65 crore as settlement amount.

Last October, Sebi issued a show-cause, alleging the private lender had made a selective disclosure on Feb 13, 2019, highlighting ‘NIL’ divergence from RBI norms in its asset classification and provisions, which had a significant positive impact on price movement.

Sebi also alleged that the bank had not disclosed other issues mentioned in the Risk Assessment Report (RAR) as observed by RBI and that it made a public announcement on February 15, 2019, after market-hours that the RAR report was confidential. “... it was expected that no part of the report and information contained therein divulged except for the information in the form and manner of disclosure prescribed by Regulations. Therefore, the Press Release breaches confidentially and violates regulatory guidelines,” Sebi said in its order on Tuesday.


Sebi alleged that Yes Bank’s public announcement on Feb 13, 2019, was incomplete. “...other lapses and regulatory breaches in various areas as identified in the RAR were not disclosed by Applicant 1 (Yes Bank). The same resulted in misleading the investors as the price of the scrip increased by around 30% and volume of trading the scrip also increased substantially the next trading day i.e. February 14, 2019.”