Yes Bank reconstruction plan: Giving fair treatment to retail investors

first_imgUnder the Yes Bank reconstruction scheme all new investors have been given a chance to buy fresh equity at Rs 10 with a lock-in of 75% for a period of three years. All existing investors to have been put with a lock-in of 75% for a period of three years. But the price point of each of the retail investors would be different.Hypothetically the day the share price hits 40 the existing investors would have recovered their entire investment by selling 25% of the investment. In order to give fair treatment, there are two options which the government can think of.1. Remove the 75% lockin2. Allow a rights issue of 1:1 for all existing investors at Rs10 on the same terms.last_img

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