The draft reconstruction scheme for YES Bank proposed by the Reserve Bank of India (RBI) seems to have really put the wind up the investors in the additional tier 1 (AT-1) capital bonds issued by the bank. These investors are crying foul, claiming that despite the AT-1 bonds being “senior” to common equity shares, they are being written down, whereas the equity shares are not.
Fund house managers are expressing surprise at the RBI’s interpretation of the rights of AT-1 bondholders vis a vis equity shareholders. Market gurus are fretting about the impact of such a write-down ...
TO READ THE FULL STORY, SUBSCRIBE NOW NOW AT JUST Rs
Key stories on business-standard.com are available to premium subscribers only.
Already a premium subscriber? LOGIN NOW
First Published: Thu, March 12 2020. 23:29 IST
