New Delhi: Troubled private lender Yes Bank will be dropped from benchmark index Nifty 50, banking index Nifty bank and other Nifty indices from March 19, NSE Indices said on Monday.
Earlier, the changes were scheduled to happen on March 27, NSE Indices, a subsidiary of the National Stock Exchange (NSE), said in a statement.
However, in light of the recent developments relating to Yes Bank and its reconstruction scheme, NSE Indices' Index Maintenance Sub-Committee (IMSC) has decided to accelerate the removal of Yes Bank from Nifty 50 and Nifty Bank and also remove it from all Nifty equity indices from thursday, March 19.
Shree Cement will replace the private lender in Nifty 50 and in Nifty bank index, Bandhan Bank will find a place.
The troubled lender will also be removed from Nifty 100 and Nifty 500.
In Nifty 100, Adani transmission will replace Yes Bank, while in Nifty 500, Sterling and Wilson solar will be added.
Earlier in February, NSE Indices had announced that on account of Yes Bank being excluded from Nifty 50 and Nifty 100, it was being included in Nifty Midcap 150, Nifty Midcap 50, Nifty Midcap 100, Nifty MidSmallcap 400 and Nifty Midcap Liquid 15 from march 27.
In light of the decision to exclude Yes Bank from all our equity indices, the lender will not be included in these indices from march 27 and the replacements of Yes Bank in these indices will be announced in due course.
On saturday, the government had notified the Yes Bank Limited Reconstruction Scheme, 2020, a day after cabinet approval.
Under the scheme, State Bank of India will invest for 49 per cent equity in Yes Bank and other investors are also being invited.
There will be a three-year lock-in period for all the investors. However, the lock-in period for SBI would be only for the 26 per cent of the shareholding.
The moratorium, which was placed by Reserve Bank of India on March 5, restricting withdrawal to Rs 50,000 per account, will also be lifted by 6 pm on wednesday.