Shares of Yes Bank crashed by 54.89 per cent on Friday morning, a day after the Reserve Bank of India (RBI) said it is superseding the board of troubled private sector lender with immediate effect. Meanwhile, the National Stock Exchange (NSE) said in a circular that no future and options contracts will be available in Yes Bank for trading in the equity derivative segment from May 29.
The existing future and options contracts across all expiries will expire on May 28, it said. "Due to the recent development in Yes Bank Ltd, it has been decided that no fresh or renewal of bank guarantees and fixed deposit receipt issued by Yes Bank Ltd will be accepted," NSE said in another circular.
The lender's stock came under selling pressure after the RBI restricted withdrawal from capital-starved bank at Rs 50,000 in the next one month. "This has been done to quickly restore depositors' confidence in the bank, including by putting in place a scheme for reconstruction or amalgamation," said the central bank in a statement.
The move by RBI comes nearly six months after it did the same with Mumbai-based Punjab and Maharashtra Cooperative (PMC) Bank. ANI
