RSS Feed
Twitter
8:11 PM
Blogger
The Yes Bank battle seems to intensify. Its promoter Rana Kapoor wrote to the Reserve Bank of India (RBI) in 2012 to seek declassification of Madhu Kapur, the wife of late Ashok Kapur, as a promoter.
Yes Bank management sources said the bank thinks that the feud over a position on the board of Yes Bank could be part of a larger corporate battle. Sources are maintaining that a decision would be taken in this regard over the next one week because all eyes will be on July 15, when the Bombay High Court once again hears the petition of Madhu Kapur, report CNBC-TV18’s Gopika Gopakumar and Ronojoy Banerjee. ( Read More )
RBI says that Rana Kapoor's request for declassifying Madhu Kapur as a promoter is contradictory to the banks shareholding structure and the article of association. The request of Rana Kapoor to declassify Madhu Kapur as the promoter was part of the dilution plan under which Rana Kapoor will have to give a time period for bringing down his stake to 10 percent.
The reason, he says for declassification is because Madhu Kapur currently does not hold any board level or management level position. This request is contradictory on two fronts - it contradicts the shareholding structure as is given in the annual report of Yes Bank, which says that Rana Kapoor and the promoter group together hold 25 percent. This 25 percent is including Madhu Kapur's 12 percent stake and Rana Kapoor's 13.7 percent stake.
The request also contradicts article of association which defines Ashok Kapur as a promoter or Indian partner which includes his successors, his family members and the assignee. So, this request or RBI's view could have ramifications, it could strengthen Madhu Kapur's case when it comes to the legal battle as the court could take cognizance of the regulators view or it could force Madhu Kapur to bring down her stake from the current 12 percent to 5 percent because RBI has declassified her as a promoter.
Either way, RBI has not formally communicated their view to Yes Bank because the matter is subjudice but RBI is concerned because the legal battle for ownership may risk Yes Bank’s reputation. According to Yes Bank sources, the management is clearly veering towards the view that there could be a corporate involvement, a third party involvement as far as this matter is concerned. They do not even rule out that perhaps this whole thing was instigated at the behest of one or two corporate houses.
In order to bring the regulators on this issue, Yes Bank management is considering two options right now. One is to approach the RBI, apprise the central bank of this supposed corporate hand behind this whole board level tussle. Apart from that, the management is also considering moving competition commission of India (CCI), according to a senior Yes Bank executive. He also added that it is a fit case for CCI because in this matter there appears that a competitor is using unfair means to fight competition.
Source: MoneyControl
Yes Bank management sources said the bank thinks that the feud over a position on the board of Yes Bank could be part of a larger corporate battle. Sources are maintaining that a decision would be taken in this regard over the next one week because all eyes will be on July 15, when the Bombay High Court once again hears the petition of Madhu Kapur, report CNBC-TV18’s Gopika Gopakumar and Ronojoy Banerjee. ( Read More )
RBI says that Rana Kapoor's request for declassifying Madhu Kapur as a promoter is contradictory to the banks shareholding structure and the article of association. The request of Rana Kapoor to declassify Madhu Kapur as the promoter was part of the dilution plan under which Rana Kapoor will have to give a time period for bringing down his stake to 10 percent.
The reason, he says for declassification is because Madhu Kapur currently does not hold any board level or management level position. This request is contradictory on two fronts - it contradicts the shareholding structure as is given in the annual report of Yes Bank, which says that Rana Kapoor and the promoter group together hold 25 percent. This 25 percent is including Madhu Kapur's 12 percent stake and Rana Kapoor's 13.7 percent stake.
The request also contradicts article of association which defines Ashok Kapur as a promoter or Indian partner which includes his successors, his family members and the assignee. So, this request or RBI's view could have ramifications, it could strengthen Madhu Kapur's case when it comes to the legal battle as the court could take cognizance of the regulators view or it could force Madhu Kapur to bring down her stake from the current 12 percent to 5 percent because RBI has declassified her as a promoter.
Either way, RBI has not formally communicated their view to Yes Bank because the matter is subjudice but RBI is concerned because the legal battle for ownership may risk Yes Bank’s reputation. According to Yes Bank sources, the management is clearly veering towards the view that there could be a corporate involvement, a third party involvement as far as this matter is concerned. They do not even rule out that perhaps this whole thing was instigated at the behest of one or two corporate houses.
In order to bring the regulators on this issue, Yes Bank management is considering two options right now. One is to approach the RBI, apprise the central bank of this supposed corporate hand behind this whole board level tussle. Apart from that, the management is also considering moving competition commission of India (CCI), according to a senior Yes Bank executive. He also added that it is a fit case for CCI because in this matter there appears that a competitor is using unfair means to fight competition.
Source: MoneyControl
0 comments:
Post a Comment