YES Bank gets ex post facto approval to raise FDI limit

New Delhi, May 25 (IANS) The Cabinet Committee on Economic Affiars (CCEA) on Wednesday gave ex post facto approval to increase the foreign investment limit in YES Bank to 75 percent.

"The CCEA chaired by Prime Minister Narendra Modi granted ex post facto approval to YES Bank to increase foreign investment limit to 75 percent from the existing foreign equity of 41.87 percent without any sub-limits, for investment by way of issue of non-equity shares and other permissible instruments to eligible non-resident investors," a finance ministry statement said.

This will result in a foreign direct investment of $1 billion (Rs.6,885 crore approx.) in the country, the statement said.

The mode of instruments include Qualified Institutions Placement (QIP) of equity shares, issue of ADRs (American depository receipts)/GDRs (global depository receipts), QFIs (qualified foreign investors)/FPIs (foreign portfolio investors) under the Portfolio Investment Scheme (PIS) by acquisition of permissible securities on stock exchange (except NRIs), it added.