New Delhi, March 14 (IANS) Yes Bank shareholders holding less than 100 shares are exempted from the lock-in requirement of three years from the commencement of the reconstruction scheme.
The ‘YES Bank Limited Reconstruction Scheme, 2020’ has been approved by the Central government and the scheme has been notified in the official gazette on March 13 when it came into force.
In a regulatory filing on Saturday, Yes Bank has said that 75 per cent of the shareholding of the shareholders holding 100 or more shares will be automatically under the lock-in period.
Accordingly, Yes Bank has said that all shareholders holding 100 or more equity shares are advised to exercise utmost caution while dealing in the script of the bank and be guided by the enclosed scheme.
As per the scheme, there will 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 the shares allotted to the investors under this scheme.
“Provided that the said lock-in period shall not apply to any shareholder holding less than 100 shares,” according to the scheme.
Since the scheme has become effective, Yes Bank has asked the stock exchanges to disseminate information on not to trade in locked in shares.
“We request you to kindly take the above on your records and disseminate to all concerned with an advice not to trade in locked-in shares,” the regulatory filing said.