Yes Bank’s disclosures about its SMBC deal are currently under SEBI’s scrutiny
Yes Bank made an announcement on May 9 about their signed share purchase agreement between SMBC and Yes Bank together with the domestic lender's investors.
Yes Bank’s disclosures about its SMBC deal are currently under SEBI’s scrutiny
The Securities and Exchange board of India (Sebi) is currently investigating Yes Bank's
disclosures related to the ongoing share sale transaction with Japan's Sumitomo Mitsui Banking
Corporation (SMBC) according to informed sources.
On May 6 Yes Bank replied to stock exchanges about media reports concerning a potential
transaction with SMBC.
The bank's stock experienced a 9 percent rise after media reports suggested a deal between Yes
Bank and SMBC according to multiple sources.
Yes Bank responded to the inquiry by labeling reports about discussions with SMBC as both
speculative and factually incorrect. The banks confirmed their lack of knowledge about any
details concerning the deal.
The bank follows a growth path while consistently seeking stakeholder opportunities to increase
shareholder value. In its filing for exchange on May 6th, the company clarified that discussions
are in the beginning stages and, consequently they are not yet able to warrant public disclosure as
per Regulation 30 of SEBI's Listing Obligations and Disclosure Requirements Regulations,
2015.
Yes Bank disclosed on May 9 that its Mumbai-based leadership along with investors including
the State Bank of India and other banks had executed a share purchase agreement with SMBC
that involves the Japanese financial institution acquiring a 20 percent stake from multiple
shareholders.
The articles publishing time arrived without receiving responses from Yes Bank and Sebi to the
sent emails.
The market rumour verification rules of Sebi require full disclosure of active deals. According to
a source who is familiar with the subject the share purchase agreement was concluded within
three days of the Yes Bank response in May, which indicated that the transaction was already in
an early stage.
SMBC received buy-out consent from additional shareholders who decided to sell their stakes.
Disclosures revealed that HDFC Bank would divest a 1.9 percent bank shareholding while ICICI
Bank and Kotak Mahindra Bank would sell 1.7 and 0.8 percent stakes respectively.
