Alert YES Bank shareholders! You can't sell over 25% stock for next three years
BusinessToday.In March 14, 2020
All existing shareholders of Yes Bank have been barred from selling more than 25 of their current holding for 3 years, according to the YES Bank Reconstruction Plan approved by Centre on March 13. Only retail shareholders holding up to 100 shares can sell their entire holding.
Anyone with shareholding up to Rs 2 lakh is called a retail shareholder. The retail shareholders collectively control 43.66 per cent of Yes Bank's stock. Anyone with more than Rs 2 lakh shareholding or high net worth individuals control another 4.3 per cent of the stock. Experts call the decision "unprecedented", adding that the decision would hurt over 16 lakh retail investors who own more than 100 shares.
The central government has notified the reconstruction scheme for the beleaguered YES Bank, saying the Rs 50,000 cap on cash withdrawal will be removed in 'three working days' from the start of the scheme (Wednesday next week).
The lead investor in the bank, State Bank of India, has already announced it will infuse Rs 7,250 crore in it, while other private lenders including ICICI Bank, Axis Bank and Kotak Mahindra Bank have also been roped in to revive the cash-strapped lender.
As per the reconstruction scheme, the authorised capital of the reconstructed bank will stand altered to Rs 6,200 crore and a number of equity shares to Rs 3,000 crore of Rs 2 two apiece, aggregating to Rs 6,000 crore. The authorised preference share capital will continue to be Rs 200 crore.
Edited by Manoj Sharma