Shares of private sector lender Yes Bank jumped on Thursday, after the firm settled a case related to alleged disclosure lapses to the exchanges, with markets regulator SEBI.
Shares of private sector lender Yes Bank jumped on Thursday, after the firm settled a case related to alleged disclosure lapses to the exchanges, with markets regulator SEBI. Yes Bank share price jumped by more than 4.2% to hit the day’s high at Rs 62 on BSE. Yes Bank, along with its compliance officer has paid a total amount of Rs 66 lakh towards settlement charges, PTI reported. While Yes Bank remitted a settlement amount of Rs 51.6 lakh, the compliance officer paid Rs 14.45 lakh as settlement charges on August 27, the agency quoted Sebi as saying in two separate orders.
Track live stock price: Yes Bank
Earlier in February, SEBI had initiated proceedings after Yes Bank’s press release titled “Divergence in Asset Classification and Provisioning for position as on March 31, 2018.” Yes Bank had reported “Nil” divergences in its assets classification and provisioning from the RBI norms, Sebi noted. According to regulations, banks are required to disclose divergences in asset classification and provisioning if the additional provisioning requirements assessed by RBI exceed 15% of the published net profit after tax or the additional gross NPAs identified by RBI exceed 15% of the published incremental gross NPAs for the reference period. Disclosure of ‘nil’ divergence is not mandated by RBI and Sebi, the regulator said. However, disclosure of ‘nil’ divergence is not mandated by RBI and Sebi, the regulator had said.
Yes Bank shares have remained under pressure in recent times, after rating Moody’s Investors Service downgraded the lender’s long-term foreign-currency issuer rating, terming the bank’s outlook as negative. “The downgrade of Yes Bank’s ratings takes into account lower than-expected amount of capital raised by the bank, and the risk that the substantial decline in the bank’s share price will challenge its ability to raise sufficient capital to maintain the rating at its previous level,” Moody’s said in a statement last week.