Home Uncategorized Yes Bank gets exemption for reclassification of promoter shareholders

Yes Bank gets exemption for reclassification of promoter shareholders

8
0
- Advertisement -

Both Kapoor groups to become just public shareholders

MUMBAI: In a major boost to its capital reinforcing plans, Yes Bank has received exemption from Securities and Exchange Board of India (SEBI), the market regulator, for reclassification of promoter shareholding, rendering Rana Kapoor group and Madhu Kapur group just non-promoter shareholders or public shareholders.

Sebi said in its order filed with the stock markets that “It 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.”

Sebi in an earlier letter had directed Yes Bank to file an affidavit before the Bombay High Court informing the Court about the Yes Bank Ltd Reconstruction Scheme, 2020 (Scheme) and the consent received from Madhu Kapur Group for reclassification. “The bank shall also take steps to get the stay vacated,” SEBI noted.

Sebi also instructed Yes Bank to furnish an application with the stock exchanges seeking the reclassification of promoters. It asked the bank to apprise the shareholders of the bank of the move at the next annual general meeting (AGM) or extraordinary general meeting (EGM).

In its plea to the market regulator, Yes Bank had explained that it was of the view that re-classification had already taken place by operation of law pursuant to the Scheme (which has overriding effect on any other law in terms of the provisions of Section 45(7 4} of the BR Act), and hence, the Bank would not be in breach or violation of the Interim Order in seeking a formal approval from its concerned statutory authorities/regulator(s) on the reclassification of Rana Kapoor Group and Madhu Kapur Group from ‘Promoter / Promoter Group’ to ‘Public’.

Yes Bank had already received consent 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.

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.

 

- Advertisement -
Google search engine