Sebi imposes Rs 2 cr fine on Rana Kapoor in YES Bank AT-1 bonds case

Capital markets regulator Sebi on Wednesday imposed a penalty of Rs 2 crore on former Yes Bank MD and CEO Rana Kapoor for mis-selling the private sector lender's AT-1 bonds.

He has been directed to pay the fine within 45 days, the Securities and Exchange Board of India (Sebi) said in its order.

The case relates to mis-selling of the bank's AT1 bonds to retail investors by its officials. It was alleged that the bank and certain officials did not inform investors of the risk involved while selling the AT-1 (Additional Tier-1) bonds in the secondary market.

The sale of AT1 bonds started in 2016 and continued till 2019.

In its 87-page order, the markets regulator found that Kapoor was overseeing the entire activities relating to the secondary sale of AT-1 bonds, taking regular updates from the team and giving them further instructions to increase the sales, thus creating pressure on the officials to ramp up the sales.

It further said that he was responsible for acts of suppression of