The Association of National Exchanges Members of India (ANMI), the umbrella body of stock brokers, wants the Reserve Bank of India (RBI) to consider exempting at least the outstanding capital market transactions wherein a Yes Bank account is involved , so that investors do not default on existing payment obligations even as money is lying in their account.
According to market participants, the sudden moratorium imposed on Yes Bank, the country’s fourth largest private sector lender, has put a question mark on many capital market transactions for which payment was scheduled to be done on Friday or will have to be done next week. “We are planning to request the RBI to consider exempting capital market transactions just like it has exempted inter-bank transactions in the moratorium,” Vijay Bhushan, president, ANMI, told The Hindu .
“At least outstanding transactions for which the payment has to be made from a Yes Bank account should be exempted,” he added.
This assumes significance as the mega public issue of SBI Cards and Payment Services closed on Thursday and the shares would be allotted in the coming days, which would require funds to be transferred from the investor’s account.
Under Application Supported by Blocked Amount (ASBA) mechanism, the money stays blocked in the investor’s bank account and is debited only at the time of allocation of shares. Also, under the T+2 settlement mechanism, payment by investors who bought shares on Wednesday or Thursday may be impacted as they would be initiated after the moratorium was issued and hence would not go through, if they were from Yes Bank accounts.
A few brokerages have suspended fund withdrawal requests for money transfer to a Yes Bank account, while setting up dedicated desks to change the redemption bank account mandates.
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“Brokers are trying to individually contact clients with Yes Bank accounts and trying to ascertain if a different bank account can be linked,” Mr. Bhushan said.
