Earlier, interest-free loans were announced for Emiratis whose businesses were affected by the rains, with a grace period of 6 to 12 months
uae5 hours ago
The Indian government on Saturday notified the scheme of reconstruction for cash-strapped Yes Bank, paving the way for the lender to resume full operations.
The bank has been put under a moratorium by the Reserve Bank of India since March 5. Under the terms of the notified scheme, this moratorium will now be lifted at 6pm on March 18.
According to the government notification, Yes Bank's authorised share capital will be revised upwards from Rs11 billion to Rs62 billion. The number of total equity shares will stand altered to 30 billion of Rs2 each aggregating to Rs60 billion. Authorised preference share capital shall continue to be Rs2 billion.
The investor bank, which in Yes Bank's case is State Bank of India (SBI), will pick up to 49 per cent of equity, while private investors will be allowed to buy the rest. SBI will have to hold at least a 26 per cent stake in the private bank for a minimum period of three years.
Similarly, other investors will also be mandated to have a similar lock-in period for 75 per cent of their investment in the bank. As per the notification, this lock-in will also be for all existing shareholders who are holding 100 or more shares in the private sector bank.
Investors in the bank, other than SBI, will also have a voting right to the extent of their shareholding in the bank or 9 per cent of the total voting rights of all shareholders in the reconstructed bank or as decided by RBI, whichever is lower. Higher voting rights up to 15 per cent may be allowed to certain investors having higher shareholding and declared "fit and proper" by the RBI.
The reconstructed bank will also allot its equity in within two working days following the commencement of the scheme.
The government has also decided to exempt all investors in the Yes Bank from payment of capital gains tax for any deemed profit or gains on account of subscription of shares.
The office of the administrator of Yes Bank shall also stand vacated after seven days from the cessation of moratorium and the new Board will take over the bank.
Prashant Kumar, former SBI CFO, and the current administrator of Yes Bank may take over as managing director and CEO of the bank.
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