SEBI Examining Yes Bank’s Disclosures Around SMBC Deal

According to news reports, the Securities and Exchange Board of India (SEBI) is now reviewing the sequence of events. The regulator is looking into whether the information disclosed by Yes Bank on May 6 was in line with the rules under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The focus is on whether the bank should have disclosed more, given the developments that followed shortly after.

In response to media reports suggesting discussions between Yes Bank and SMBC, Yes Bank characterised these reports as "speculative" and "not factually correct." The bank stated that it was not aware of any information regarding the deal, which had led to a 9 per cent surge in its stock price following publication of this news.

As of 11:06 AM on May 16, 2025, Yes Bank share price was trading at ₹21.83, a 1.49% increase, with a 13.54% increase over the past six months and a 3.36% drop over the past year.

Formal Agreement Announced

On May 9, Yes Bank disclosed that it had entered into a share purchase agreement with SMBC. The agreement involves SMBC acquiring a 20% stake in the bank through the purchase of over 413 crore shares, amounting to 13.9% of the total equity base. The shares are being sold by existing investors, including State Bank of India (SBI), HDFC Bank, ICICI Bank, and Kotak Mahindra Bank.

Read More: Yes Bank Begins CEO Succession Planning Ahead of Prashant Kumar’s Term End

Ownership Details

As of March 31, domestic banks together held 33.7% in Yes Bank. SBI had the largest share at 23.97%, followed by HDFC Bank, ICICI Bank, and Kotak Mahindra Bank. Foreign investors CA Basque Investments and Verventa Holdings held 6.8% and 9.2%, respectively. The bank also has a retail investor base of around 63 lakh.

Conclusion

The timeline between Yes Bank’s denial on May 6 and the official deal announcement on May 9 is under regulatory review. SEBI is assessing if there was a delay in disclosing price-sensitive information.

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