The Cabinet Committee on Economic Affairs chaired by the Prime Minister Shri Narendra Modi today granted ex-post facto approval to the proposal of M/s Yes Bank Ltd. for increase in the foreign investment limit to 74% from the existing foreign equity of 41.87% without any sub-limits, for investment by way of issue of non-equity shares and/or other permissible instruments to eligible non-resident investors.

The mode of instruments include Qualified Institutions Placement (QIP) of equity shares and/or issue of ADRs/GDRs and/or QFIs/FPIs under the Portfolio Investment Scheme (PIS) by acquisition of permissible securities on stock exchange (except NRIs). The approval may be accorded subject to the conditions referred to para 8.2 of the Note.

This will result in a Foreign Direct Investment of US $ 1 billion (Rs. 6885 crores approx.) in the country.

Foreign investment limit increase approved ex post facto, permitting expanded non resident investment via QIP, ADR/GDR and PIS. Ex-post facto approval authorised an increase in the foreign investment limit in M/s Yes Bank Ltd., permitting eligible non-resident investors to invest by way of non-equity shares and other permissible instruments. Permitted modes include Qualified Institutions Placement, issuance of ADRs/GDRs, and portfolio acquisitions under the Portfolio Investment Scheme, subject to the conditions set out in the approving note.