Yes Bank shares saw a rise of up to 4 percent on Monday. The rise in the stock has come after a major relief from the Securities Appellate Tribunal (SAT). The SAT has put a stay on the decision of market regulator SEBI for the time being.
In fact, SEBI was fined Rs 25 crore in the AT-1 (Additional Tier 1) bond case to Yes Bank. SEBI also imposed a penalty of Rs 25 crore on Yes Bank along with three of its officers. In this, Vivek Kanwar was fined Rs 1 crore, Ashish NASA and Jasjeet Singh with a fine of Rs 50 lakh.
But now the SAT has stopped the decision of SEBI. Due to which, the bank will not have to pay a fine of Rs 25 crore at the moment. SEBI had imposed this fine on the bank on charges of cheating customers. Sebi says that Yes Bank did not inform customers about its risk factor while selling AT-1 bonds in the secondary market.
Giving an immediate relief to Yes Bank, the SAT has sought a reply from SEBI on the matter in the next 4 weeks. At the same time, after three weeks, Yes Bank has been asked to present its stand on the reply of SEBI. The matter has been deferred till July 31 for the next hearing.
The SAT said in its order that at first sight we found that the risk of AT-1 bonds has been given on the website, and it was known to everyone. On this basis, an interim ban has been imposed on the penalty.
