YES Bank to completely sell its mutual fund business operations

Mumbai headquartered Yes Bank declared its intention to cease its mutual fund business operations by selling out all its holdings in asset management and trustee subsidiaries. Wholly owned subsidiaries of YES Bank Limited are YES AMC (Yes Asset Management) is the asset management company of YES Mutual Fund and YTL (Yes Trustee Ltd) is the trustee of YES Mutual Fund.

What is a Mutual Fund?

• A mutual fund is a professionally managed investment fund that gathers money from many investors either retail or institutional for purchasing securities.
• The Mutual Fund was introduced in India in 1963 with the establishment of the Unit Trust of India (UTI) by the Government of India. It enjoyed a monopolistic business until 1987 in the Indian mutual fund market.

Previously in News

Yes Bank witnessed a severe crisis in March 2020. The bank started lending several organizations that were experiencing a stressful situation. It then started raising its capital by selling shares which eventually lowered its price.

Month: Current Affairs - August, 2020