Yes Bank under SEBI probe over potential Insider Trading Violations

• The Securities Exchange Board of India (SEBI ) is closely inquiring the potential violations of disclosure norms including Insider Trading Rules , at Yes Bank ( the bank ) . Allegations are with regards to selective revelations on the private -sector lender`s asset quality .
• Investigations  also relate to disclosures made by Yes Bank on 'nil divergence' from Reserve Bank of India`s (RBI) assessments on Bad Assets.
• Risk Assessment Report (RAR) of RBI is 'confidential' a confidential document  and it is  expected that no part of the report is divulged except for the information in the form and manner prescribed by the regulations.
• 'NIL divergence ' is not an achievement to be published and it only compliance with the extant Income Recognition and Asset Classification norms .
• The divergence report contains three parts and the said report has a mention of several lapses and regulatory breaches . Disclosure of only a part of this report is being viewed as a deliberate attempt by Yes Bank  to mislead the public .
• RBI assess compliance's by banks with the existing prudential norms on income recognition, asset classification and provisioning.
• In its assessment , RBI had earlier found that against Rs.748.98 Crore of gross NPA`s reported on 31st ,March 2016,the tally was at Rs.4925.68 Crore leading to a divergence of Rs.4176.70 Crore.
• This divergence further increased to Rs.6335 Crore in 2016-2017 and was the main reason behind the former CEO Rana Kapoor`s exit from the bank .