There was a notification from the Ministry of Finance in the matter of Yes Bank Limited on Friday evening, March 13th, 2020. As per this, 75% of all shares that you hold will be locked for 3 years and can’t be sold. This won’t be applicable for customers holding less than a hundred (100) shares.
To give effect to the above notification the depositories are executing a corporate action and changing the ISIN of Yes Bank from INE528G01027 (old) to INE528G01035 (new).
Check this to read the circular from CDSL (Depository) and Ministry of Finance.
So what does this mean?
If you hold more than 100 shares of Yes Bank, you are locked in for 3 years. You will not be able to sell it. So Kite will start showing only 25% of shares you held on 13th March, the shares you can sell. The total quantity including the locked shares will be shown on Console.
If you hold less than 100 shares, you will be able to freely sell all the shares that you’re holding. What this means is that if you held 100 shares, 75 shares are locked for 3 years, but if you held 99 shares no shares are locked.
From Monday 16th March 2020, whatever new shares you buy, you will be able to freely sell them. This 75% restriction is only on shares you held on evening Friday, 13th March 2020 and not on new shares that you buy from now.
What happens to those who bought Yes Bank shares on Thu,12th and Fri,13th? - You will not be able to sell them until you get delivery of the shares (no BTST allowed). Hence shares bought on these days won’t show up on Kite, it will show up on Console though.
What happens to all F&O positions on Yes Bank? - As of now, it seems like same Friday night positions will continue to be held tomorrow.
Update 19th March
Yes Bank bought on 12th will be showing up on Kite. 75% of stocks bought on 12th are blocked. 13th is yet to show up as the stocks credited in the demat are of the old ISIN, the RTA needs to change it to new ISIN, post which it will start showing up.
Update 18th March
Yes Bank bought on 12th and 13th will still not show up in your holdings due to an issue with clearing corporations and depository.
Update 17th March
Yes Bank stocks bought on Thursday, 12th March 2020 and Friday, 13th March 2020 haven’t been delivered by the clearing corporations yet. So they won’t be shown either on Kite or Console. We will update as soon as they are delivered.
You will also not be able to see Yes Bank shares bought on Monday, 16th March 2020 in your T1 holding (no BTST trades). You will be able to see and sell them only after the stock is delivered to your account after 2 days.
Update 16th March
If you have Yes Bank stock in multiple demat accounts of yours, the 100 shares for lockin is calculated based on your holdings across all your demat (based on PAN). So even if you hold <100 Yes Bank shares in one demat, it might be locked because you have more than 100 across multiple demat accounts.
If you have lent or borrowed Yes Bank shares on SLB (Stock lending and borrowing system), there is no clarity yet on what will happen. Will update when we have more info.
Part of Index?
Yes Bank will be excluded from all indices from 19th March 2020.
F&O trading to stop on May 29th, 2020. But this is as per the circular before the last weekend notification from ministry of finance. I will update if any changes on this date here.