National Chronicle
Business/Economy National Top News

Yes Bank Crisis: Regulatory difficulty for Yes Bank investors

Yes Bank is in dire need of funds but at the moment its difficulties do not seem to be easing. There are also regulatory difficulties in front of Yes Bank’s fund raising scheme. According to CNBC-TV 18, Tilden, JC Flowers and other companies will be able to invest in the bank only when the regulatory conditions are met.
It is not yet clear whether the RBI will allow more than 74 percent foreign stake in Yes Bank. According to sources, RBI wants a lock-in commitment before allowing investment. Lock-in commit is also called rate-lock. This means that the lender company will give a loan for a fixed interest rate and a fixed tenure.
Yes Bank is trying to pay $ 2 billion to increase its capital base. Earlier, the bank had also talked to domestic lenders such as SBI, Axis Bank, HDFC and LIC, but could not be reached. Sources said that some lenders like Axis Bank did not show any interest in Yes Bank.

Sources said that the foreign investors had asked to issue preferential issue at a lower price than the price that comes out of Sebi’s fixed formula, on which the regulator did not agree.
Now foreign investors want to take a stake, including preferential issue and rights issue. With this, investors have asked to sell Tier-1 bonds. However, this is not possible as they are politically sensitive bonds. And most of the bonds are with LIC and EPFO.
Some other experts say that the solution of Yes Bank’s difficulty is similar to that of Satyam Computer. In this, Tech Mahindra bought Satyam Computer. Similarly, Yes Bank should also be acquired. Experts said that RBI and SEBI should focus on this.

Related posts

GST Compensation Shortfall: ‘Centre bound to compensate states for GST collection shortfall’

Team NC

Andhra records 2,901 more Covid cases, tally reaches 8.1 lakh

Team NC

Biden leads Trump in TV viewership ratings from duelling town halls

Team NC

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More