INSUBCONTINENT EXCLUSIVE:
Mumbai: The moratorium on YES Bank will be lifted at 6 pm on March 18, the third working day after the YES Bank reconstruction scheme comes
into force, the government notified late on Friday.
Yes Bank was placed under a moratorium earlier this month by the Reserve Bank of India
(RBI), who imposed a Rs 50,000-limit on withdrawals from the bank till April 3.
The scheme also prescribed a lock-in period for investors
who hold 100 shares or more in the private lender to the extent of 75 per cent of their holdings for all existing shareholders and those
allotted to the investors under the reconstruction scheme.
The government also said an investor, other than State Bank of India, may
exercise voting rights to the extent of its shareholding or maximum nine per cent of the total voting rights of all the shareholders of the
reconstructed bank.
The authorised capital of the reconstructed bank will stand altered to Rs 6,200 crore and number of equity shares to
3,000 crore.
The office of the administrator of the reconstructed bank, which was appointed by the RBI, will stand vacated immediately after
seven calendar days from the date of cessation of moratorium.
A board will be reconstituted comprising of Prashant Kumar, former chief
financial officer and deputy managing director of State Bank of India as chief executive officer and managing director, Sunil Mehta, former
non-executive chairman of Punjab National Bank as non-executive chairman, Mahesh Krishnamurthy as non-executive director and Atul Bheda as
non-executive director.
SBI will also nominate two officers as Directors while RBI may appoint one or more persons as additional
directors.
Any investor who is permitted to have voting right of fifteen per cent shall have the right to nominate one director on the