SAT dismisses Rana Kapoor's appeal against Sebi's Rs 1-cr penalty order

Case relates Sebi show-cause to Kapoor and his firm for alleged lapse in disclosure norms

The Securities Appellate Tribunal (SAT) has dismissed an appeal filed by Rana Kapoor, erstwhile promoter of Yes Bank, against an order passed by market regulator Sebi imposing a penalty of Rs 1 crore for not following disclosure norms.

In 2018, Rana Kapoor-owned Morgan Credit had raised Rs 950 crore through zero coupon non-convertible debentures (ZCNCD) issued to a mutual fund house. Kapoor had provided personal guarantee for the transaction.

It was alleged that Morgan Credit company had failed to disclose encumbrance on the bank’s shares either to Yes Bank nor the stock exchange.

In May 2019, Sebi had issued show