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Private sector lender YES Bank is seeking clarity from concerned regulators, including the Securities and Exchange Board of India (Sebi), on whether Madhu Kapur can be moved out of the promoter category.
Against the backdrop of an ongoing legal tussle over Madhu Kapur's right to nominate directors on the lender's board, the YES Bank board late last month had decided that she cannot be treated 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 YES Bank's board. Madhu Kapur is the estranged sister-in-law of YES Bank CEO Rana Kapoor.
She and her family as well as a related entity together have nearly 12 per cent stake in the bank, according to data available with stock exchanges.
“In order to ensure compliance with law, the bank is in the process of seeking regulatory clarifications on the matter from the concerned authorities. 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 with regard to plans to remove Madhu Kapur from the promoter category, has the bank sought clarifications from Sebi, the corporate affairs ministry and the Reserve Bank of India (RBI).
In the shareholding pattern details provided to the NSE, YES Bank has mentioned “subject to regulatory clarifications” against promoter entities — Madhu Kapur and family, and Mags Finvest Private Ltd.
At the end of March, 2014, Madhu Kapur and family held 9.74 per cent while the shareholding of Mags Finvest stood at 2.17 per cent. Madhu Kapur is the wife of late Ashok Kapur who was co-founder and promoter of YES Bank.
“Madhu Kapur being successor of 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 April 28. The board of YES Bank had taken this decision during their meeting last month.
“Since the advocates of Madhu Kapur as a start up 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 daughter Shagun Kapur Gogia of a place on the board.
