Sandip Bhagaton on Yes Banks: S&R Associates Mr.Sandip Bhagat shares his assessment on Yes bank's choice to defer its Q3 results.
Mr.Sandip can you please tell us how the regulators may react to the Yes Bank’s decision? How do you think from the regulator’s point of view? Could there any relaxations or rules laid out with regard to the pricing at which the investors could come in?
Here, we have to think about two things, one is clearly the SEBI will come set up if over 5% gained by any individual speculator. Where you need earlier endorsement from Reserve Bank of India (RBI) and they look and see whether he is an appropriate individual or not.
Though the subsequent issue is truly on valuing. The SEBI special estimating is stopping by buying in to a new issue of offers. In any case, the SEBI prerequisites are exceptionally clear and, in the event, that they are any presumptions like in the event that someone is going as a component of a key obligation rebuilding there we have a few relaxations given in the standard itself. Be that as it may, in the event that they don't meet those specific conditions which are there for particular allocation. Along these lines, there is a plan affirmed by a high court or there's a change of the advance at which this isn't one of those then you need an extraordinary unwinding from SEBI expansive.
This means they'll need to proceed to look for an exclusion from the controller and it's not satisfactory to me whether controller gives any exception. I imagine that should be examined. For what reason should the Securities and Exchange Board of India (SEBI) gave exclusions for them, not for the others that will be the conversations the controllers will have.
What are the proceedings to figure out? What regulator would do because there will be many considerations here are wondering? The feedback that we get when we speak to the capital market participants is the pricing may become an issue for Yes Bank?
As I would see it, the conditions under extraordinary allotment are given by SEBI. In any case, I don't have the foggiest idea what contentions they will make here however in the event that the organization with low pay and not secured under the arrangements this is somewhat inconvenience that SEBI needs to step in.
I think these conditions where SEBI may take a gander at it and consider giving alleviation. I don't have the foggiest idea whether any of that exists right now for yes bank. In this way, I figure it will be a hard case to experience yet again it's among them and the regulators.