RBI & SEBI granted time in AT1 bonds case

Bombay high court has granted time to RBI and SEBI to file responses in a petition filed by individual holders of Yes Bank additional tier 1 (AT1) bonds.

The bondholders, who had approached the court in February, 2021 under the banner of the AT1 Bondholders Association, claim that the sale of bonds was illegal and have asked for Yes Bank to be directed to deposit Rs. 160 crore in court, pending a decision in the case.

In October, 2020, the Supreme Court had directed the association to approach the high court. The petitioners in this case had invested about Rs. 160 crore in Yes Bank’s AT1 bonds.

Srijan Sinha, an advocate who appeared on behalf of the association, said, “Some of the respondents including SEBI and RBI sought time to file a reply to our interim relief application. The court has allowed them to file the same and listed the matter next on 26 April.”

The petition named 16 respondents including SEBI, RBI, Yes Bank, Union of India, Yes Securities (India) and Axis Trustee Services, among others.

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