InvestorQ : What is the investigation that SEBI is doing into the SLBM trades in Yes Bank and what is the issue here?
Dia Deshpande made post

What is the investigation that SEBI is doing into the SLBM trades in Yes Bank and what is the issue here?

Answer
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Ria Jain answered.
3 months ago


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.