Post the Yes Bank FPO next week, SEBI plans to look into a big chunk of share transaction in Yes Bank under the SLBM mechanism on Thursday, July 09. Interestingly, these transactions in SLBM took place a day before the announcement floor price for FPO in the range of Rs.12-13.

It has emerged that investors had borrowed 95.99 lakh shares worth Rs.5.90 crore at a fairly steep interest rate of Rs.7 per share. These shares were borrowed with a 1-month horizon. This trend of borrowing had been visible from June 30 onwards. The interest rate is effectively 26%, which is too steep. Normally, investors sell shares by borrowing from SLBM in anticipation of a price fall. SEBI found the rate of interest paid quite out of sync.