Yes Bank today said it has received approval from its board of directors to hike the foreign shareholding limit up to 74 per cent, from existing 49 per cent.
"... The board of directors of the company has approved the proposal to seek final approval of shareholders for increase in the limit for FII/FPI up to 74 per cent of the paid-up share capital of the bank from the existing limit of 49 per cent," it said in a filing to the BSE.
In the Budget for 2015-16, the government had announced that the distinction between different types of foreign investments, especially between foreign portfolio and foreign direct, will be done away with and replaced with a composite cap.
The amendments to applicable laws and the notification for increased cap for investment by Foreign Portfolio Investors (FPIs)/ Foreign Institutional Investors (FIIs) are still awaited.
"Accordingly, the Board approved the above proposal to seek the enabling approval of the shareholders so as to enable the shareholders of the bank to avail the significant benefits of the increased limit of up to 74 per cent foreign ownership as and when the relevant regulations are prescribed by the authorities/government," it added.
Besides, the bank's Board has approved sponsored Level I Depository Receipt (DR) issuance programme of up to 1 crore DRs.
It will involve conversion of 2 equity shares to 1 DR, for facilitating issue of depository receipts outside India against underlying existing equity shares through a foreign depository through sponsored/unsponsored route.
Meanwhile, Yes Bank shares closed 6.96 per cent up at Rs 846 apiece on the BSE.
