New Delhi: Private Sector Lenders Yes Bank and six persons on Tuesday settled with Self A case related to alleged selective disclosure of asset quality after paying Rs 1.65 crore a settlement cost.
Apart from the bank, the six people who settled the case include Ashish Aggarwal, Niranjan Banodkar, Sanjay Nambiar, Devmalya Day, Rajat Monga and Shivanand Shettigar.
The order came after the entities approached SEBI to settle the proceedings initiated against them through a settlement order “without accepting or denying the findings of facts and law”. In a settlement order on Tuesday, SEBI said, “The expeditious adjudication proceedings initiated against the applicants under the SCN (Show Cause Notice) dated October 26, 2020 are disposed of”.
The regulator examined Yes Bank cases during February 2019 to find out possible violations of the provisions of the SEBI Act and PFUTP (Prohibition of Fraudulent and Unfair Trade Practices).
As per the investigation, SEBI found that certain violations were allegedly committed by the bank and six persons and issued a show cause notice to them in this regard in October 2020.
In the show cause notice, it was alleged that Yes Bank made a selective disclosure on February 13, 2019 highlighting “zero” divergence, which had a significant positive impact on the price movement and others mentioned in the Risk Assessment Report (RAR). Issues not disclosed. ) as observed by RBI such as defaults and regulatory violations in various areas of its functioning.
It was alleged that the announcement made by Yes Bank to the exchanges was “incomplete as only select disclosures highlighted zero deviations in the asset classification of the bank and provision was disclosed from RBI norms as per RBI’s RAR.”
“However, other loopholes and regulatory violations in various areas identified in the RAR were not disclosed,” the order said.
Investors were misled as a result of the announcement as the scrip price increased by almost 30 per cent and the trading volume of the scrip also increased significantly on the next trading day i.e. February 14, 2019.
It was alleged that the bank and six persons involved in the decision-making process to make the information public have violated the provisions of PFUTP norms.
The six persons were either members of the prestigious Risk Management Committee (RRMC) or were part of the decision-making process with respect to the disclosures made on February 13, 2019. Pending adjudication proceedings, the applicants proposed to dispose of the proceedings initiated against them and filed settlement applications.
Subsequently, the SEBI committee recommended that the matter be disposed of on payment of Rs 1.65 crore by the applicants on joint and multiple liability basis and remitted the amount accordingly. Consequently, the Securities and Exchange Board of India (SEBI) settled the matter.
Apart from the bank, the six people who settled the case include Ashish Aggarwal, Niranjan Banodkar, Sanjay Nambiar, Devmalya Day, Rajat Monga and Shivanand Shettigar.
The order came after the entities approached SEBI to settle the proceedings initiated against them through a settlement order “without accepting or denying the findings of facts and law”. In a settlement order on Tuesday, SEBI said, “The expeditious adjudication proceedings initiated against the applicants under the SCN (Show Cause Notice) dated October 26, 2020 are disposed of”.
The regulator examined Yes Bank cases during February 2019 to find out possible violations of the provisions of the SEBI Act and PFUTP (Prohibition of Fraudulent and Unfair Trade Practices).
As per the investigation, SEBI found that certain violations were allegedly committed by the bank and six persons and issued a show cause notice to them in this regard in October 2020.
In the show cause notice, it was alleged that Yes Bank made a selective disclosure on February 13, 2019 highlighting “zero” divergence, which had a significant positive impact on the price movement and others mentioned in the Risk Assessment Report (RAR). Issues not disclosed. ) as observed by RBI such as defaults and regulatory violations in various areas of its functioning.
It was alleged that the announcement made by Yes Bank to the exchanges was “incomplete as only select disclosures highlighted zero deviations in the asset classification of the bank and provision was disclosed from RBI norms as per RBI’s RAR.”
“However, other loopholes and regulatory violations in various areas identified in the RAR were not disclosed,” the order said.
Investors were misled as a result of the announcement as the scrip price increased by almost 30 per cent and the trading volume of the scrip also increased significantly on the next trading day i.e. February 14, 2019.
It was alleged that the bank and six persons involved in the decision-making process to make the information public have violated the provisions of PFUTP norms.
The six persons were either members of the prestigious Risk Management Committee (RRMC) or were part of the decision-making process with respect to the disclosures made on February 13, 2019. Pending adjudication proceedings, the applicants proposed to dispose of the proceedings initiated against them and filed settlement applications.
Subsequently, the SEBI committee recommended that the matter be disposed of on payment of Rs 1.65 crore by the applicants on joint and multiple liability basis and remitted the amount accordingly. Consequently, the Securities and Exchange Board of India (SEBI) settled the matter.
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