Under the reconstruction scheme for Yes Bank existing shareholders will be locked in for a period of three years up to 75% of their shareholding. This will only be applicable to shareholders holding more than 100 shares of Yes Bank. Investors holding less than 100 shares of Yes Bank can sell without any restrictions. The move is almost unprecedented in India's corporate history and will largely affect the 16 lakh retail shareholder. The worst impact will be on those who entered the stock at the peak. Even at its peak in August 2018, 100 shares in Yes Bank cost just ₹39,320. A shareholder holding 20,000 shares will be able to sell 5,000 shares but the balance 15,000 shares will be locked in for 3 years. There is an interesting angle to this. It will impact investors having a covered call strategy on Yes Bank. When the stock goes out of F&O in March, they can exit their F&O positions, but they will be forced to retain their cash position. This also applies to arbitrage positions.