After Reserve Bank of India (RBI) rapped YES Bank for making a report marked ‘confidential’ public, the private lender said that the NPA divergence information followed due compliance. The bank stated that release of the report was made with intention to be fully compliant with SEBI regulations for information symmetry among market participants.
RBI mandates that no part of the Risk Assessment Report (RAR) other than any information on divergence can be made public.
Also read: Sugar MSP hike likely to bring relief to ailing mills; here’s how
“The bank in its assessment was of the view that the disclosure pertaining to divergence was a UPSI and required prompt dissemination to the Stock Exchanges in order to ensure compliance with Sebi (PIT) Regulations and the NSE & BSE circulars,” Yes Bank said in a regulatory filing.
“Immediately on receipt of the RAR report, to mitigate and to avoid any further speculation, misuse or leakage of the UPSI, it was decided to disseminate the information regarding “Divergence” to the stock exchanges, so as to ensure information parity, instead of withholding this information till finalization of the Annual Results,” the bank also said.
On February 15, the private lender has said it has received a letter from the RBI which noted RAR was marked ‘confidential’ and it was expected that no part of the report be divulged except for the information in the form and manner of disclosure prescribed by regulations.