The government on Friday (13 March) notified the scheme of reconstruction for Yes Bank. As per the reconstruction scheme, apart from State Bank of India and other new private investors picking up equity in the cash strapped bank, all existing shareholders who are holding 100 or more shares will also face a three-year lock-in for their 75% investment.
There shall be a lock-in period of three years from the commencement of this Scheme to the extent of seventy-five per cent in respect of– (a) shares held by existing shareholders on the date of such commencement; (b) shares allotted to the investors under this Scheme: Provided that the said lock-in period shall not apply to any shareholder holding less than one hundred shares,” the notification issued late on Friday (13 March 2020) said.
Meanwhile, the restrictions on withdrawals from the bank accounts will be lifted in three working days or on 18 March. “The order of moratorium on the reconstructed bank issued by the Government of India…shall cease to have effect on the third working day at 18:00 hours from the date of commencement of this Scheme,” the notification said.
Earlier on 5 March, the Reserve Bank of India (RBI) placed Yes Bank under a moratorium, restricting withdrawals to Rs 50,000 per depositor till 3 April. It had also superseded the board and placed it under an administrator, Prashant Kumar, former deputy managing director and CFO of SBI.
Shares of Yes Bank ended 2% higher at Rs 25.55 on Friday.
