Yes Bank seeks SEBI nod to remove Madhu Kapur as promoter
09 May 2014
Lender Yes Bank has sought clarity from the Securities & Exchange Board of India and other regulators on whether Madhu Kapur can no longer be considered as a promoter of the bank.
This is part of the legal and boardroom tussle over Kapur's right to nominate directors on the lender's board. The Yes Bank board had, late last month, decided not to treat her as a promoter.
Last month, the Bombay High Court had directed Rana Kapoor and Madhu Kapur to amicably resolve a dispute relating to the latter's right to nominate directors on the bank's board. Madhu Kapur is the estranged sister-in-law of Yes Bank chief executive officer Rana Kapoor. She and her family as well as a related entity together have nearly 12 per cent in the bank.
"In order to ensure compliance with law, the Bank is in the process of seeking regulatory clarifications on the matter from the authorities concerned. Further, the bank has made appropriate public disclosures in this regard," a Yes Bank spokesperson said.
He was responding to queries on whether the bank has sought clarifications from SEBI, the corporate affairs ministry and Reserve Bank of India (RBI) over its plans to remove Madhu Kapur from promoter category.
In the details of the shareholding pattern provided to the National Stock Exchange, Yes Bank has mentioned "subject to regulatory clarifications" against promoter entities Madhu Kapur and Family, and Mags Finvest Pvt Ltd.
At the end of March 2014, Madhu Kapur and family held 9.74 per cent while of Mags Finvest held 2.17 per cent in the bank's capital. Madhu Kapur is the wife of late Ashok Kapur who was co-founder and promoter of Yes Bank.
"Madhu Kapur being the successor of the late Ashok Kapur cannot be considered as Indian partner or India promoter and accordingly, cannot inherit the rights under Articles of Association or the status of promoter of Yes Bank," Yes Bank had said in a statement on 28 April. The board of Yes Bank had taken this decision during their meeting last month.
"Since the advocates of Madhu Kapur, as a start to any amicable resolution, require the bank to recognise her rights as Indian Partner, the board is not in a position to accede to any such request for the reason mentioned above," it had said.
Rana Kapoor and Ashok Kapur jointly founded the bank in 2004. Ashok Kapur was killed in the Mumbai terrorist attack of November 2008.
In 2013, Madhu Kapur had moved the Bombay High Court alleging that Rana Kapoor attempted to deprive her and her children of a place on the board.