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NSE puts restrictions on Yes Bank shares
PTI
Last Updated IST
A customer tries to look into a Yes Bank branch in Mumbai. Reuters
A customer tries to look into a Yes Bank branch in Mumbai. Reuters

The National Stock Exchange (NSE) on Friday put restrictions on Yes Bank shares in various segments, including futures and options.

In a rare move, capital-starved Yes Bank was on Thursday placed under a moratorium, with the RBI capping deposit withdrawals at Rs 50,000 per account for a month and superseding its board.

The categories placed under restriction include debt, securities lending and borrowing scheme, currency derivatives, commodity derivatives, futures and options, as per notification by NSE.

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"Due to the recent development in Yes Bank it has been decided that no fresh or renewal of bank guarantees and fixed deposit receipt issued by the bank limited will be accepted," it said.

The existing benefit provided to members towards Bank Guarantees and Fixed Deposit Receipt issued by Yes Bank in favour of NSE Clearing Ltd, shall also be reduced, it added.

"The financial position of Yes Bank has undergone a steady decline largely due to inability of the bank to raise capital to address potential loan and losses and resultant downgrades, triggering invocation of bond covenants by investors and withdrawal of deposits," NSE said in a separate circular.

The bank has also experienced serious governance issues and practices in the recent years which have led to steady decline of the bank, it added.

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(Published 06 March 2020, 12:02 IST)