Sebi may probe YES Bank for 'selective disclosure' leading to stock rise

The sharp spurt in prices on Thursday had added more than Rs 2,000 crore (notional gains) to promoters' wealth

Private lender YES Bank, which faces regulatory action from the Reserve Bank of India (RBI) for selective disclosures of the confidential risk-assessment report (RAR), may now face probe by the Securities and Exchange Board of India (Sebi) because the bank’s revelation led to heavy buying in the stock on Thursday.

The bank’s stock gained 30 per cent on Thursday, which was its highest-ever single-day gain. 

The sharp run-up came after YES Bank issued a press statement on Wednesday, saying said the RBI’s FY18 RAR found nil divergences in the bank’s asset quality and provisioning. 

“Investors who took positions based on