Yes Bank promoters seek probe against short sellers hammering the stock
Yes Capital and Morgan Credit have written to the Surveillance and Investigation Department, National Stock Exchange, asking them to investigative and act against rumours spread against Yes Bank, causing damage to share value and opening up the field to short sellers.
Yes Capital and Morgan Credit are the promoters of Yes Bank facing heat from investors and stake holders over multiple rating downgrade and stakes in fraud-hit CG power.
"We continue to witness unabated speculation in Yes Bank stock, particularly by short sellers who appear to be speculating on the back of unpublished information led by the countless highly negative messages circulated on what's app chat group banking institution - Yes Bank. We request you to kindly this highly serious matter," the letter said.
"We are forwarding this letter to SEBI and RBI for them to take note of the letter and to conduct an investigation to their end as well as especially considering Yes Bank is a systematically important financial service institution (sic.)," the letter stated.
The two shareholders had sent a similar letter to the stock exchanges last month as well.
Short sellers are market players who speculate on share prices of scrips and undertake sale of a stock without owning it. This is done in the hope of being able to buy back the stock at a price lower than what they had sold it for. The difference between the selling price and the buying price is their profit.
The Yes Bank stock, which was trading around Rs 275 in April, is now down to around Rs 64. Poor performance on several financial parameters and the controversial exit of Rana Kapoor has resulted in a free fall of the company's stock. 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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    pravin banker

    4 months ago

    What is ailing India - why the sharp fall in economic growth? The simple and most direct reason is the banking system - its literally bankrupt. The PSBs can be kept alive through massive injections of public taxpayer funds BUT the private sector? Short sellers know that YES bank is very very weak and its promoters do not have the bottomless pockets to prop it up like the State and SBI.
    I once joked with Arun Jaitley when he was just a SC Lawyer and a Rajya Sabha member. I asked him the rhetorical Q as to why Indira Gandhi nationalized the banks... my answer was so that they were a well for her loyal supporters to dip into to get rich. Most of todays entrepreneurs built up billions in assets by simply having friendly PSB lenders. In fact they encouraged consortiums of PSBs to "rotate" the risk and responsibility as "lead lenders".. I know many of them and have seen this first hand.
    Its all coming to a head now and "once bit twice shy" - PSBs are no longer anxious to take risk - no motivation - no baksheesh.

    How To Make Fresh Investments Now
    Gloom and doom pervades the stock markets. Should you run away from stocks now? Banks are in a mess; auto sales are down; and economic growth is so poor that if I adjust for the fudging that goes on, who knows what kind of numbers we will end up with. You never know where the bottom is.
    This is not an unusual situation. Maybe it is a first for those who have started to invest in...
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