2 thoughts on “Sebi (not RBI) finds Yes Bank guilty of mis-selling AT1 Bonds to retail investors

  1. A welcome step by SEBI but as the writer says, RBI should have done it and done it unambiguously with a clear message to all bankers and investors that investor’s interests cannot be overlooked.

  2. Not only that RBI has failed in its duty and responsibility, but, also the very fact that RBI adopted different approach to two different cases in the same time period – one was Yes Bank case, where, straightaway in the first and opening press conference by the RBI Governor it was informed that the AT1 bonds would be written off/extinguished; whereas in the case of Laxmi Vilas Bank, first, only the equity was written off and nothing happened with AT1 bonds of LVB and after a gap of two days, by which time there was a lot of furor and hulla-gulla about the differential treatment to equity and AT1 bond holders in the cases of Yes Bank and LVB, it was decided to write off/extinguish the AT1 bonds also.
    It is good to note that at least SEBI is discharging its legal and fiduciary responsibility.

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