SEBI slaps Rs 25 crore fine on Yes Bank, orders deposit within 45 days

New Delhi, dated 13 April 2021, Tuesday

Yes Bank has now been fined Rs 25 crore by the Securities and Exchange Board of India (Sebi) for controlling the stock market. The bank has to deposit this amount within 45 days.

Experts believe that it will not affect the consumers but the share price may go down. This could hurt investors. Yes Bank was rescued in March last year by a group of banks led by State Bank of India. As part of which the bank's Ativan bonds were closed.

However, investors alleged that the bonds were sold by the bank with false futures. Investors should be compensated for this. The matter is currently in the High Court. Yes Bank and RBI, however, say that the Ativan bond is in accordance with the rules.

Experts say Ativan bonds are permanent bonds. Which does not have an expiry date. Such bonds are issued by banks to raise capital. Which is regulated by the RBI. Interest is paid periodically to the borrower.