Can I Sell Yes Bank Shares Before 3 Years in Case of Emergencies?
Introduction to Yes Bank Shares Selling Restrictions
Amidst the restructuring plan of Yes Bank, investors often face questions regarding the sellability of their shares. These shares come with specific restrictions, especially when it comes to selling them in the short term. This article provides clarity on whether you can sell all of your Yes Bank shares before the mandatory 3-year lock-in period in case of emergencies.
Understanding the Selling Restrictions
According to the new revival plan for Yes Bank, there are strict limitations on the sale of shares. If you are holding more than 100 shares, you are permitted to sell only 25 of them. This restriction is irrespective of the circumstances, including emergencies. Thus, you are not allowed to sell more than 25 shares from your holdings before the 3-year period has lapsed.
Specifically, if you have shares that were purchased before March 13, 2020, a maximum of 25 shares can be sold. The remaining shares will have a 3-year lock-in period. However, if you hold fewer than 100 shares, there is no such restriction. On the other hand, for any shares purchased after March 16, 2020, there are no such selling restrictions, and you can sell them freely.
Emergency Situations and Selling Restrictions
In cases of emergencies, some might wonder if there are provisions that allow selling shares earlier than the 3-year period. Unfortunately, the official stance from the government does not currently provide exemptions for emergencies. However, it is always good to check with your designated clearing and depositary participant (DP) to confirm any specific interpretation or regulations that might apply in your situation.
Conclusion: Understanding the Lock-In Period
Despite the uncertainties surrounding emergencies, it is crucial to adhere to the existing lock-in period for the majority of Yes Bank shares. According to the information provided, 75% of your holdings are locked down for a period of 3 years. Therefore, you are required to wait until the end of this period before you can sell all your shares freely.
For detailed and up-to-date information, it is always recommended to consult your financial advisor or the official Yes Bank communication channels. Ensuring that you follow the correct procedures and understand your rights as an investor is paramount to navigating these complex circumstances.