<p>Sebi on Tuesday sent a notice to Yes Bank's former MD and CEO Rana Kapoor, asking him to pay Rs 2.22 crore in a case of mis-selling the private sector lender's AT1 bonds and warned of arrest and attachment of assets as well as bank accounts if he fails to make the payment within 15 days.</p>.<p>Kapoor has been in jail since March 2020 in connection with the DHFL money laundering case.</p>.<p>The demand notice came after Kapoor failed to pay the fine imposed on him by the Securities and Exchange Board of India (Sebi) in September 2022. </p>.<p>In a notice, Sebi directed Kapoor to pay Rs 2.22 crore, which includes interest and recovery costs, within 15 days. </p>.<p>In the event of non-payment of dues, the market regulator will recover the amount by attaching and selling his moveable and immovable property. Besides, Kapoor faces attachment of his bank accounts and arrest.</p>.<p>In September 2022, the regulator imposed a penalty of Rs 2 crore on Kapoor in the matter.</p>.<p>The case relates to mis-selling of the bank's AT1 (Additional Tier-1) bonds to retail investors by the bank's officials. It was alleged that the bank and certain officials did not inform investors of the risk involved while selling the AT-1 bonds in the secondary market. The sale of AT1 bonds started in 2016 and continued till 2019.</p>.<p>In its order, Sebi stated that Kapoor was overseeing the entire operation relating to the secondary sale of AT-1 bonds, taking regular updates from the team and giving them further instructions to increase the sales, thus creating pressure on the officials to ramp up the sales.</p>.<p>Further, the regulator stated that Kapoor was responsible for acts of misrepresentation or suppression of material facts, manipulation and mis-spelling of AT-1 bonds of Yes Bank to individual investors. Also, Kapoor pressured officials of the private wealth management team to devise a devious scheme to dump the AT-1 bonds on hapless customers of Yes Bank.</p>
<p>Sebi on Tuesday sent a notice to Yes Bank's former MD and CEO Rana Kapoor, asking him to pay Rs 2.22 crore in a case of mis-selling the private sector lender's AT1 bonds and warned of arrest and attachment of assets as well as bank accounts if he fails to make the payment within 15 days.</p>.<p>Kapoor has been in jail since March 2020 in connection with the DHFL money laundering case.</p>.<p>The demand notice came after Kapoor failed to pay the fine imposed on him by the Securities and Exchange Board of India (Sebi) in September 2022. </p>.<p>In a notice, Sebi directed Kapoor to pay Rs 2.22 crore, which includes interest and recovery costs, within 15 days. </p>.<p>In the event of non-payment of dues, the market regulator will recover the amount by attaching and selling his moveable and immovable property. Besides, Kapoor faces attachment of his bank accounts and arrest.</p>.<p>In September 2022, the regulator imposed a penalty of Rs 2 crore on Kapoor in the matter.</p>.<p>The case relates to mis-selling of the bank's AT1 (Additional Tier-1) bonds to retail investors by the bank's officials. It was alleged that the bank and certain officials did not inform investors of the risk involved while selling the AT-1 bonds in the secondary market. The sale of AT1 bonds started in 2016 and continued till 2019.</p>.<p>In its order, Sebi stated that Kapoor was overseeing the entire operation relating to the secondary sale of AT-1 bonds, taking regular updates from the team and giving them further instructions to increase the sales, thus creating pressure on the officials to ramp up the sales.</p>.<p>Further, the regulator stated that Kapoor was responsible for acts of misrepresentation or suppression of material facts, manipulation and mis-spelling of AT-1 bonds of Yes Bank to individual investors. Also, Kapoor pressured officials of the private wealth management team to devise a devious scheme to dump the AT-1 bonds on hapless customers of Yes Bank.</p>