Yes Bank on Friday received exemption from the Securities and Exchange Board of India (SEBI) for re-classification of the promoter shareholding.
This move means that its founding promoters Rana Kapoor and Madhu Kapur families and firms linked to them will now become non-promoter shareholders or public shareholders.
The two families’ collective holding has dropped to only 1.42 per cent of the shareholding after the reorganisation of the shareholding following the over Rs 10,000 crore bailout of the struggling lender in March led by SBI in a scheme led by the central government.
“..the Competent Authority has approved your application under Regulation 102(1 )(d) of SEBI LODR and exempted the applicability of sub-regulation (3) and (4) of Regulation 31A and clause (a) and (b) of sub-regulation (8) of Regulation 31A of SEBI LODR for reclassification of the existing promoters/person(s) belonging to the promoter group since, in this context, reclassification is a procedural formality and a consequence of the Scheme approved and notified by the Central government,” said the SEBI letter to the bank, which was then submitted to the exchanges on Friday.
Earlier on June 9, the market regulator had directed the private lender to file an affidavit in Bombay High Court informing about the programme and a consent form signed by Madhu Kapur Group for re-classifications.
Later in the evening on Friday, the bank informed that both the leading bourses – BSE and NSE – have approved the reclassification of the promoter group.
On May 30, Yes Bank had informed that it will reclassify its shareholding as the Madhu Kapur group had consented to be categorised as public stake holders.
Following ouster of Rana Kapoor, who is in police custody on alleged charges of corruptions and financial mismanagement among others, Yes Bank is now led by State Bank of India alongside several private sector lenders after the initiation of the reconstruction scheme.
Troubles at Yes Bank started after the death of Ashok Kapur who was killed in the 2008 terror attack at the Taj hotel in Mumbai.
As a co-founder Rana Kapoor sought to control the bank hence entangling the lender into legal hurdles besides inviting strain into family relations.