NSE puts restrictions on YES Bank shares\, no bank guarantees to be accepted

NSE puts restrictions on YES Bank shares, no bank guarantees to be accepted

The bank has also experienced serious governance issues and practices in the recent years which have led to steady decline of the bank

Press Trust of India  |  New Delhi 

NSE
The categories placed under restriction include debt, securities lending and borrowing scheme, currency derivatives, commodity derivatives, futures and options

The (NSE) on Friday put restrictions on shares in various segments, including futures and options.

In a rare move, capital-starved was on Thursday placed under a moratorium, with the RBI capping deposit withdrawals at Rs 50,000 per account for a month and superseding its board.

The categories placed under restriction include debt, securities lending and borrowing scheme, currency derivatives, commodity derivatives, futures and options, as per notification by

"Due to the recent development in it has been decided that no fresh or renewal of bank guarantees and fixed deposit receipt issued by the bank limited will be accepted," it said.

The existing benefit provided to members towards Bank Guarantees and Fixed Deposit Receipt issued by YES Bank in favour of Clearing Ltd, shall also be reduced, it added.

"The financial position of YES Bank has undergone a steady decline largely due to inability of the bank to raise capital to address potential loan and losses and resultant downgrades, triggering invocation of bond covenants by investors and withdrawal of deposits," said in a separate circular.

The bank has also experienced serious governance issues and practices in the recent years which have led to steady decline of the bank, it added.

Read our full coverage on YES Bank
First Published: Fri, March 06 2020. 11:40 IST