The Securities and Exchange Board of India on Friday imposed a fine of Rs 1 crore on former Yes Bank MD and CEO Rana Kapoor for violation of disclosure regulations regarding a transaction of Morgan Credits Pvt Ltd, an unlisted promoter entity of Yes Bank.
In view of the transaction by Morgan Credits Pvt Ltd of raising Rs 950 crore from Reliance Mutual Fund through unlisted Zero Coupon Non-Convertible Debentures on April 19, 2018, the SEBI undertook examination in the matter about the possible requirements of disclosure under its regulations, the order said.
The SEBI sought information from the BSE and NSE with respect to the aforesaid transaction and they informed that they had not received any disclosures under the LODR Regulations and the SAST Regulations from Yes Bank or its promoters regarding the aforesaid transaction by its promoter entity.
The SEBI also sought comments from the company, and was informed that "its promoter Morgan had raised Rs 950 crore from RMF, which was not in the nature of encumbrance of shares by promoters and thus, there has been no requirement of disclosures under the LODR Regulations and SAST Regulations".
"This is a case whereby not disclosing the substantial material interest in the transaction to the Board of Directors of the Company, the noticee has created an opaque layer between him and stakeholders," said the order.
The SEBI imposed a consolidated monetary penalty of total Rs 1 crore on Rana Kapoor, for the violations of Regulations 4(2)(f)(i)(1) and 4(2)(f)(i)(2) of the LODR Regulations, under section 15HB of the SEBI Act.
Meanwhile, the Enforcement Directorate (ED) attached a Rs 127-crore flat of Rana Kapoor in London in connection with a money laundering investigation against him and others, the central agency said on Friday.
The agency issued a provisional order for attaching the property -- Apartment 1, 77 South Audley Street, London -- under the Prevention of Money Laundering Act (PMLA).
"The market value of the flat is 13.5 million pound (about ₹127 crore). The property was purchased by Rana Kapoor in 2017 for 9.9 million pound ( ₹93 crore) in the name of DOIT Creations Jersey Limited and he is the beneficial owner," the ED said in a statement.