SEBI orders releasing bank, demat accounts, MF holdings of Rana Kapoor

Markets regulator Securities and Exchange Board of India (SEBI) on Wednesday ordered releasing the bank accounts/lockers, demat accounts and mutual fund holdings of Rana Kapoor, former MD and CEO of YES Bank.

Kapoor is currently in judicial custody after being arrested in March 2020 in the alleged Yes Bank fraud case. SEBI, in March, had attached Rana Kapoor's bank accounts, shares and mutual fund holdings to recover dues of more than Rs 1 crore.

The release order came after the Supreme Court, on August 2, stayed the Securities Appellate Tribunal (SAT) order, which had upheld a penalty of Rs 1 crore on Kapoor. The stay was subject to payment of Rs 50 lakh by Kapoor.

The regulator had levied Rs 1 crore on Kapoor in September 2020 for not making disclosures regarding a transaction of Morgan Credit, which was an unlisted promoter entity of Yes Bank.

The pending dues, totalling Rs 1.04 crore, included an initial fine of Rs 1 crore and an interest of Rs 4.56 lakh and a recovery cost of Rs 1,000. Kapoor, in compliance with the Supreme Court's interim order, has deposited the amount, SEBI noted.

SEBI asked all banks in the country and depositories -- National Securities Depository Limited (NSDL) and Central Depository Services Limited (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".

By not disclosing details of the transaction to Yes Bank's board of directors, Kapoor created an opaque layer between him and stakeholders and violated the provision of the Listing Obligations and Disclosure Requirements (LODR) Regulation, SEBI's order stated.

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