YES Capital and Morgan Credits, the two promoter shareholders of Yes Bank, have written to the surveillance departments of BSE and the National Stock Exchange (NSE) alleging that short sellers are hammering the stock by spreading negative messages about the bank. Moneycontrol is in possession of a copy of the letter.
Short sellers are market players who sell a stock, even though they do not own it. They do so 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.
“We continue to witness unabated speculation in the Yes Bank stock, particularly by short sellers who appear to be speculating on the back of unpublished price information led by countless negative messages being circulated on WhatsApp/chat groups. We request you to investigate this highly serious matter,” the letter said.
The two shareholders said they were forwarding the letter to the Securities and Exchange Board of India (SEBI) as well as the Reserve Bank of India.
The two shareholders had sent a similar letter to the stock exchanges last month as well.
The Yes Bank stock, which was trading around Rs 275 in April, is now down to around Rs 68. The controversial exit of Rana Kapoor and a sharp deterioration in the financial performance of the bank have been the major reasons for the decline in the stock price.
News Source:- moneycontrol