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Bad news for Yes Bank shareholders: You can't sell more than 25% stock before 3 years

Bad news for Yes Bank shareholders: You can't sell more than 25% stock before 3 years

Bad news for Yes Bank shareholders: You can't sell more than 25% stock before 3 years
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By CNBC-TV18 Mar 14, 2020 12:12:42 PM IST (Updated)

The government reconstruction scheme notified on Saturday for troubled Yes Bank has prescribed a three-year lock-in for all investors, including retail investors, to the extent of 75 percent of their holdings.

The government reconstruction scheme notified on Saturday for troubled Yes Bank has prescribed a three-year lock-in for all investors, including retail investors, to the extent of 75 percent of their holdings.

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Only retail investors that hold less than 100 Yes Bank shares are exempted. The lock-in is effective as of March 13, meaning retail investors cannot sell their shares when trading opens on Monday.
"This is an odd decision. The intention may be to reduce volatility in the shares. But the government should focus on the recapitalisation of the bank and proper working of the bank rather than the trading of shares," said Sudip Bandyopadhyay, Director, Intitrade Capital.
State Bank of India (SBI), the lead investor in Yes Bank, has already announced to infuse Rs 7,250 crore in the bank, while other private banks including ICICI Bank, Axis Bank and Kotak Mahindra Bank have also been roped in to revive the lender.
With the scheme coming into effect, the moratorium, or withdrawal limitations imposed on Yes Bank depositors, will be lifted at 6:00 pm on the third working day, as was confirmed by union finance minister Nirmala Sitharaman at a press conference yesterday, about 15 days ahead of schedule.
The scheme also sanctioned the raising of the bank's authorised capital roughly six times to Rs 6,200 crore to accommodate raising of fresh capital.
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