Restrictions on Yes Bank FDs, shares

MUMBAI: Stock exchanges have put several restrictions on collaterals like bank guarantee and FDs issued by Yes Bank, which brokers give as margins for trading on the bourses. On Friday, after the RBI put restrictions on the operations of the troubled private lender, the NSE said all collaterals from Yes Bank are to be replaced with new collaterals by March 11. From now on, exchanges will not accept Yes Bank stocks as collateral.


The NSE also said that all derivative contracts on the bank will close by end of May and no trading in derivatives on the bank will take place from June.

“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 Yes Bank shall be accepted,” an NSE circular said. It also said that by March 9, bank guarantees and FDs issued by the bank will be reduced by 50% while the remaining 50% will be reduced by March 11, meaning these instruments will cease to be accepted as collateral by that day.

Another circular said the NSE said that due to the troubles at the bank, all futures & options contracts on the stock will expire on May 28 and no F&O contracts “shall be available in Yes Bank for trading in equity derivatives segment from May 29, 2020”.


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