Yes Bank promoters seek probe against short sellers hammering the stock
Friday - September 13, 2019 11:34 am , Category : BUSINESS
Mumbai, Sep 13 (IANS) 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unabated speculation in Yes Bank stock, particularly by short sellers who appear to be speculating on the back of unpublished information led by the countless highly negative messages circulated on what's app chat group banking institution - Yes Bank.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.