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Delhi HC asks RBI, SEBI, Govt to respond on Charges of Dubious

Published on March 18, 2023
Current context: The deal of Yes bank to sell its stressed assets worth ₹48,000 crore to JC Flowers is signed.
  • Reserve Bank of India (RBI) and Securities Exchange Board of India (SEBI) will seek a PIL on the transfer of Yes Bank’s stressed assets to JC Flowers.
  • JC Flowers and Cerberus Capital’s Rs.48,000-crore stressed assets of YES Bank. JC Flowers will be paying only 15 per cent upfront of the Rs.12,000-crore offer it made. The remaining 85 per cent payment by JC Flowers will be staggered over the years.
  • The PIL is raised of Yes Bank’s transfer to the tune of Rs.48,000 crore.
  • The bank did not disclose the various fee structures it agreed with JC Flower ARC i.e. management fee of 1.5% payable per annum, sharing with JC Flower upon recovery from stressed assets. Net recovery of Yes Bank vide sale of the entire Portfolio of identified stressed assets is minuscule after adjusting for the management fee, and reinvestment into JC Flower.
  • This transfer is with the deal in which Yes Bank has obtained a stake of up to 19.9 percent in the company of JC Flowers.

Question:

Q.1 The deal of Yes bank to sell its stressed assets worth ₹48,000 crore to JC Flowers is signed.
a. Rs. 48,000 crore
b. Rs. 42,000 crore
c. Rs. 38,000 crore
d. Rs. 28,000 crore

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