Money & Banking

SEBI gives exemptions to Yes Bank for reclassification of promoter shareholders

Our Bureau Mumbai | Updated on June 12, 2020 Published on June 12, 2020

Yes Bank resumed its full banking services from Wednesday evening.   -  PTI

Yes Bank has received exemption from Securities and Exchange Board of India (SEBI) for reclassification of promoter shareholding. This in effect, will mean that Rana Kapoor group and Madhu Kapur group will now be non-promoter shareholders or public shareholders.

“..the Competent Authority has approved your application under Regulation 102(1 )(d) of SEBI LODR and exempted the applicability of sub-regulation (3) and (4) of Regulation 31A and clause (a) and (b) of sub-regulation (8) of Regulation 31A of SEBI LODR for reclassification of the existing promoters/person(s) belonging to the promoter group since, in this context, reclassification is a procedural formality and a consequence of the Scheme approved and notified by the Central government,” said the SEBI letter, which was filed by Yes Bank to the exchanges on Friday.

The regulator in its letter dated June 9 has, however, directed Yes Bank to file an affidavit before the Bombay High Court informing the Court about the Scheme and the consent received from Madhu Kapur Group for reclassification. “The bank shall also take steps to get the stay vacated,” SEBI said.

It has also asked the private sector lender to disclose the application to the stock exchanges for reclassification of the promoters and inform the shareholders about the move in the next annual general meeting or extraordinary general meeting.

Yes Bank had late last month announced that it has received consent from from Madhu Ashok Kapur, Shagun Kapur Gogia, Gaurav Ashok Kapur and Mags Finvest (or collectively referred to as “Madhu Kapur Group”) to reclassify their shareholding in the bank as ‘non-promoter shareholders’ or public shareholders.

This came after the reconstitution scheme of Yes Bank was implemented wherein State Bank of India has picked up a majority stake in Yes Bank.

As on March 31, 2020, Madhu Kapur Group held 1.42 per cent stake in the private sector lender with Madhu Kapur holding 1.12 per cent equity and Mags Finvest holding 0.3 per cent stake. The bank’s other co-founder and former Managing Director and CEO Rana Kapoor and his family’s stake amounted to just 900 shares or 0 per cent stake held through Yes Capital.

On June 9, Kapur, who is the wife of the bank’s late co-founder Ashok Kapur, and her family also withdrew a case filed against the lender in the Bombay High Court in 2013.

The case was filed by Kapur when the family was locked in a battle with the bank, which was at the time headed by Rana Kapoor.

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

Published on June 12, 2020
This article is closed for comments.
Please Email the Editor