YES Bank fiasco: Mutual funds to approach Sebi on 3-year lock-in

Nifty, Bank Nifty funds will have to sell stock after index exclusion

Worried over the 75 per cent three-year lock-in for YES Bank shareholders, mutual funds (MFs), along with stock exchanges, will approach the Securities and Exchange Board of India (Sebi) on how the impact of government’s notification can be mitigated on index funds and exchange-traded funds (ETFs). 

From March 27, YES Bank will be excluded from both the Nifty and Bank Nifty indices. Index funds and ETFs need to exit from the bank shares once the lender is excluded from indices. According to the data from RupeeVest, MFs’ equity exposure to YES Bank stood at Rs 492 crore as of February 29,