Mumbai: YES BANK, India’s 5th largest private sector Bank has received approval from The Cabinet Committee on Economic Affairs (CCEA) chaired by the Honorable Prime Minister Shri. Narendra Modi for increase in foreign investment limit to 74% without any sub-limits, including for investments by QFIs / FPIs under the Portfolio Investment Scheme (PIS) by acquisition of permissible securities on stock exchanges (except NRIs). This is further to the first stage approval which was obtained from Foreign Investment Promotion Board (FIPB), Department of Economic Affairs, Ministry of Finance, vide its meeting dated March 7th, 2016.
Under this approval, the modes of instruments include Qualified Institutions Placement (QIP) of equity shares and/or issue of ADRs/GDRs and/or QFIs/FPIs (except NRIs), under the Portfolio Investment Scheme (PIS) by acquisition of permissible securities on stock exchange. The increase in limit will provide YES BANK with significant enhanced flexibility in Global Capital Raising, going forward. YES BANK already has enabling approval from its Board of Directors to raise an additional USD 1 Billion of Equity Capital.
With this approval, YES BANK has become the 1st Bank in India to receive approval for a fully fungible composite foreign investment limit of 74% which was notified by the Cabinet in 2015, in order to remove sub-ceilings for multiple investor categories of FII/FDI/FPI.
The CCEA added in its Press Release that this approval is expected to boost Foreign Direct Investments into India.
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