Yes Bank Lower Circuit: SEBI Checking Role of Brokers in Stock Decline

Yes Bank Lower Circuit: SEBI Checking Role of Brokers in Stock Decline

Yes Bank opened on lower circuit yesterday as the follow-on public offer stocks were listed on the exchanges for trade. The move surprised many investors who had purchased Yes Bank stock during FPO. As per reports, SEBI is checking the role played by some big brokers in lower circuit for Yes Bank on opening bell on Monday.

Yes Bank sold shares worth Rs 15,000 crore during FPO to investors at Rs 12 per share. However, the stock was trading 10% down on Monday, at Rs 12.30, leading to no gains for investors. Investors should keep on holding the stock as it could soon revive, it is yet to be seen what action SEBI would take against the brokers, if they are found guilty of misconduct.

Yes Bank was trading nearly 8 percent down in today’s trade as well during early trade and the stock has already touched 10 percent lower circuit. Yes Bank declined from Rs 28 when the bank announced Rs 12 as floor price for FPO.

Yes Bank can be considered as an option only by investors with high risk profile. The stock has not much to decline from current levels but if the bank improves its balance sheet (which is highly likely with better management in place), the chances of appreciation are high. However, it should only be considered by investors with high-risk profile. Otherwise, there are many other options in the market for medium and long term investment.