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With the government notifying the YES Bank Limited Reconstruction Scheme, 2020, the private sector lender has advised all shareholders holding 100 or more equity shares to exercise “utmost caution” while dealing in it.
Noting that 75 per cent of the shareholders holding 100 or more shares will automatically go lock-in under the scheme, Yes Bank, in a regulatory filing, on Saturday said, “Accordingly, all shareholders holding 100 or more equity shareholders are advised to exercise utmost caution while dealing in the script of the bank and be guided by the enclosed Scheme.”
Under Sub-clause 8 of Clause 3 of the Scheme, there is a three–year lock in period from the start of the scheme to the extent of 75 per cent of shares held by existing shareholders as well as shares allotted to the investors under this Scheme.
Such a move is being seen as being unprecedented and will also impact the retail shareholders of the private sector lender. Retail investors hold about 48 per cent stake in Yes Bank.
As per the shareholding data till December 2019, there were 16.18 lakh individuals holding share capital up to ₹2 lakh.
Meanwhile, third quarter results by the private sector lender are still awaited. The bank is scheduled to announce its financial performance for the third quarter on Saturday.
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