Yes Bank alert! Shutdown of securities trading for 16 days for these investors! Rana Kapoor led bank submits names for new chief

Three big developments took place in private lender, the beleaguered Rana Kapoor led Yes Bank on Thursday. Interestingly, investors reacted quite cautiously as can be seen in the bank’s share price. Yes Bank share price touched an intraday high of Rs 191 per piece on BSE, before ending at Rs 186.70 per piece, which was subdued compared to previous trading price. One of the major development that affected Yes Bank was that it finally submitted new MD and CEO candidates' names to the Reserve Bank of India.

Yes Bank has been struggling for the last three months to find a new MD and CEO after RBI shockingly decided to end the tenure of the current chief Rana Kapoor. RBI has asked Yes Bank to say goodbye to Kapoor by end of January 31, and a new CEO to take charge from February 01, 2019. Interestingly, not just one, but some more developments were announced by Yes Bank. 

Firstly, Yes Bank on Thursday submitted the names of the potential candidates for its Managing Director and Chief Executive post to the Reserve Bank of India (RBI), according to IANS. However, there were no names revealed in public about who is likely to take charge at Yes Bank. 

Yes Bank finalised suitable candidates names on January 09 itself, however, it looks like investors and the rest of the public will just have to wait for the official announcement to find out who will be anointed as chief after the redoubtable Rana Kapoor.

In its notification to exchanges on Wednesday, Yes Bank said, “Pursuant to the reconunendations of the Search & Selection Committee ('S&SC') and the Nomination and Remuneration Committee ('NRC'), the Board of Directors of the Bank at its meeting held on January 09, 2019 have finalised names of potential candidates for the position of MD& CEO. “

Second big development by Yes Bank was allotment of  5,40,856 (Five Lakh Forty Thousand Eight Hundred and Fifty Six) equity shares of face value of~ 2/- each on January 9, 2019 under ESOP plans JESOP V, PESOP II, PESOP II- 2010 and PESOP I. 

The paid up share capital of the Bank has accordingly been increased from Rs 4,624,629,550/- consisting of 2,312,314,775 equity shares of Rs  2/- each to Rs  4,625,711,262/- consisting of 2,312,855,631 equity shares of Rs 2/- each. 

Finally, in a shocking news for this list of investors, Yes Bank announced that their trading window  for dealing in Securities of the Bank will remain closed  for 16 days. 

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It said, “Dealing in Securities of the Bank will remain closed for the Designated Employees, Directors, Promoters of the Bank and its subsidiaries, including their immediate relatives, and for Connected Persons till January 26, 2019 and hence, they are not permitted to trade in the securities of the Bank till January 26, 2019. “

Hence, Yes Bank stock price will definitely dance to the tune of these new developments.