Sebi has forced a punishment of Rs 25 crore on Yes bank and three senior chiefs of its private abundance supervisory crew for purportedly executing misrepresentation on its clients by impacting them to change their venture positions from fixed stores (FD) to unsafe AT-1 (extra level 1) bonds
The controller imposed a penalty of Rs 1 crore on Vivek Kanwar, head of private abundance the board, and Rs 50 lakh each on Ashish Nasa and Jasjit Singh Banga.
Sebi said it had gotten a few objections from financial investors in AT-1 bonds issued by by Yes Bank. It said it led an examination and found that AT-1 obligations of Yes Bank were offered to retail Investors between December 1, 2016 and February 29, 2020.
The SEBI saw down-sell of AT-1 bonds were not haggled among purchasers and merchants exclusively however worked with by Yes Bank for around 1,300 individual financial backers, a large portion of whom were existing clients of Yes Bank. It likewise saw that Yes bank addressed the item as “Super FD” and “as protected as FD .
The term sheet was not shared to numerous financial Investors and no confirmation was taken from the financial Investors on their comprehension of he highlights and risks associated with the bond.
Hazard profiling of individual customers was not done particularly financial backers more than 70/80/90 years of age. Parcel size of the bond was diminished to work with down deal to singular financial backers. Push from the MD and President (Rana Kapoor) of Yes Bank to down sell the AT1 bonds which drove the private abundance supervisory crew to foolishly offer the bonds to singular Investors.
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