Egulator orders efreezing of Rana apoor’s accounts
Markets regulator rities and Exchange Board dia (Sebi) on Wednesday red defreezing of bank unts as well as share and ual fund holdings of Rana oor, former managing ctor (MD) and chief execuofficer (CEO) of Yes Bank. apoor is currently in judicial ody after being arrested in ch 2020 in the alleged Yes
fraud case. he regulator, in March, had hed bank accounts, share mutual fund holdings of oor to recover dues of over ore. The decision was taken
Kapoor failed to pay the imposed on him. bi, in September 2020, had d a fine of ₹1 crore on oor for not making disclos regarding a transaction of gan Credit, which was an ted promoter entity of Yes . not disclosing about the saction to Yes Bank’s board rectors, Kapoor created an ue layer between him and eholders and violated the ision of the LODR (Listing gations and Dislcosure irements) Regulation, Sebi said in the order. he release order came after eme Court, on August 2, ed the Securities Appellate unal (SAT) order which had eld a penalty of ₹1 crore on oor. The stay was subject to ment of ₹50 lakh by Kapoor.
compliance of Supreme rt’s interim order, he has sited the amount, the regunoted. ccordingly, Sebi on Wednesasked all banks in the country and depositories -- NSDL and CDSL—“TO release the bank accounts /locker, demat accounts and mutual fund folios of defaulter (Kapoor) attached if any pursuant to... the notice of attachment”.
In February, the Sebi issued a demand notice to Kapoor, although he did not pay any dues. The pending dues, totalling ₹1.04 crore, included an initial fine of ₹1 crore and an interest of ₹4.56 lakh and a recovery cost of ₹1,000.
Earlier, the Supreme Court on Monday granted conditional stay on the Securities Appellate Tribunal’s order that had upheld Sebi’s orders imposing a fine of ₹1 crore on Rana Kapoor and a penalty of ₹50 lakh each on two other entities—yes Capital (India) and Morgan Credits.
A bench led by Justice SA Nazeer granted the stay on the condition that Kapoor will deposit ₹50 lakh as directed by the SAT in its June 18 order. The apex court also noted that the two entities had already deposited ₹30 lakh each pursuant to the tribunal dismissing their appeal.