The mis-selling menace

Sebi order on AT-1 bonds is in the right direction

The Securities and Exchange Board of India (Sebi) in an order has imposed a fine of Rs 25 crore on YES Bank for mis-selling additional tier-1 (AT-1) bonds to individual investors, which has the potential to set a new, healthier trend. In addition to a severe indictment of the bank, Sebi has penalised three senior bank executives who are being held responsible for misleading retail investors. The bank had raised Rs 8,800 crore from this issue of high-risk instruments. The entire amount was written off by the Reserve Bank of India (RBI) when YES Bank was forced to restructure. The