NSE expedites removal of Yes Bank from Nifty

It has decided to exclude the bank from all indices with effect from March 19

Customers of Yes Bank queue up to withdraw money from their accounts at an Automated Teller Machine (ATM) kiosk in Mumbai on March 5, 2020. - India's central bank on March 5 appointed an administrator for one of the country's top lenders and limited withdrawals amid a "serious deterioration" in its financial position, in the latest bad debt issue to hit India's banking sector. Yes Bank, India's fourth-largest private sector bank, has been struggling with bad loans and the move came amid reports that the country's largest lender State Bank of India and other financial institutions were poised to bail it out. (Photo by Indranil MUKHERJEE / AFP)

The National Stock Exchange (NSE) has preponed the exclusion of Yes Bank stock from the benchmark Nifty index along with a few other sectoral and broader indices.

While the private sector lender, which is in the midst of a reconstruction scheme, was scheduled to be excluded from the induces with effect from March 27, the Exchange has decided to now exclude the bank from all the indices with effect from March 19.

 

"... in light of the recent developments relating to Yes Bank and the Gazette notification dated March 13, 2020 on ‘Yes Bank Limited Reconstruction Scheme, 2020’, subsequent to above announcements on index rebalancing, the Index Maintenance Sub-Committee (IMSC) has decided to accelerate the removal of Yes Bank Limited from NIFTY 50 and NIFTY Bank and also remove it from all NIFTY equity indices w.e.f. Thursday, March 19, 2020 (close of March 18, 2020)," said a release from NSE issued on March 16.