India's Yes Bank Ltd. paid approximately 5.2 million rupees to settle a case involving the Securities and Exchange Board of India's allegations that it selectively disclosed portions of the central bank's risk assessment report in February.
The private sector lender disclosed in February that the country's central bank did not find any divergence in its asset classification and provisioning for the fiscal year 2017-2018. The disclosure positively impacted the bank's stock price. The bank, however, did not disclose other issues mentioned in the central bank's risk assessment report such as lapses and regulatory breaches.
The securities regulator alleged that Yes Bank made selective disclosure of the risk assessment report, did not follow due procedure to disclose material information and did not have systems in place to ensure that proper procedures are followed.
Yes Bank's compliance officer, Shivanand Shettigar, agreed to pay about 1.5 million rupees as settlement charges in the same case. Shettigar, as the bank's compliance officer, was responsible for ensuring that the correct procedure was followed, SEBI said.
As of Sept. 4, US$1 was equivalent to 71.99 Indian rupees.
