Rana Kapoor has been in jail since March 2020
New Delhi:
Sebi on Tuesday despatched a discover to Sure Financial institution’s former MD and CEO Rana Kapoor, asking him to pay Rs 2.22 crore in a case of mis-selling the non-public sector lender’s AT1 bonds and warned of arrest and attachment of belongings in addition to financial institution accounts if he fails to make the fee inside 15 days.
Kapoor has been in jail since March 2020 in reference to the DHFL cash laundering case.
The demand discover got here after Kapoor did not pay the high quality imposed on him by the Securities and Change Board of India (Sebi) in September 2022. In a discover, Sebi directed Kapoor to pay Rs 2.22 crore, which incorporates curiosity and restoration prices, inside 15 days. Within the occasion of non-payment of dues, the market regulator will get better the quantity by attaching and promoting his moveable and immovable property. In addition to, Kapoor faces attachment of his financial institution accounts and arrest.
In September 2022, the regulator imposed a penalty of Rs 2 crore on Kapoor within the matter.
The case pertains to mis-selling of the financial institution’s AT1 (Further Tier-1) bonds to retail buyers by the financial institution’s officers. It was alleged that the financial institution and sure officers didn’t inform buyers of the chance concerned whereas promoting the AT-1 bonds within the secondary market. The sale of AT1 bonds began in 2016 and continued until 2019.
In its order, Sebi said that Kapoor was overseeing all the operation regarding the secondary sale of AT-1 bonds, taking common updates from the crew and giving them additional directions to extend the gross sales, thus creating strain on the officers to ramp up the gross sales.
Additional, the regulator said that Kapoor was accountable for acts of misrepresentation or suppression of fabric info, manipulation and mis-spelling of AT-1 bonds of Sure Financial institution to particular person buyers. Additionally, Kapoor pressured officers of the non-public wealth administration crew to plan a devious scheme to dump the AT-1 bonds on hapless clients of Sure Financial institution.
(Aside from the headline, this story has not been edited by NDTV employees and is printed from a syndicated feed.)
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