Yes Bank shareholders to have automatic 3-yr lock-in, shares not tradable under this period

New Delhi, Mar 14 () Yes Bank on Saturday said as per the government's reconstruction scheme for the bank, the incoming shareholding of shareholders with 100 and more shares would be automatically locked in for three years.

"In terms of the said clause, 75 per cent of the shareholding of the shareholders holding 100 or more shares will be automatically under the lock-in," it said in a regulatory filing.

"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 Scheme," it added.

The crisis-hit bank asked the shareholders to take on their "records and disseminate to all concerned with an advice not to trade in locked-in shares".

The Centre had on Saturday notified the YES Bank Limited Reconstruction Scheme, 2020, a day after approving it in a cabinet decision.

The scheme has come into force on Friday. There shall be a lock-in period of three years from the commencement of this scheme to the extent of 75 per cent in respect of shares held by existing shareholders on the date of such commencement; and shares allotted to the investors under this Scheme, it added.

The said lock-in period shall not apply to any shareholder holding less than one hundred shares, it added.

The SBI, which will have a stake of 49 per cent in the bank through Rs 7,250-crore equity infusion, have a lock in period of three years only for the 26 per cent of this holding. The private sectors financial entities will have to stay locked in for three years.

As per the rescue plan for cash-strapped Yes Bank, ICICI Bank will invest Rs 1,000 crore, mortgage lender HDFC Rs 1,000 crore, Axis Bank Rs 600 crore, Kotak Mahindra Bank Rs 500 crore, Bandhan Bank and Federal Bank Rs 300 crore each.

The government had on Saturday also appointed Yes Bank administrator Prashant Kumar as the MD and CEO. The moratorium, which was placed on March 5 restricting withdrawal to Rs 50,000 per account, will also be lifted by 6 pm on Wednesday. KPMHMB