Yes Bank Limited won a landmark case in the Supreme Court of India on September 2, 2026. The court overturned a directive from the Securities Appellate Tribunal (SAT) and NSE Clearing Limited (NCL) that required the bank to reinstate liquidated securities.
The dispute originated from a March 2020 incident during the COVID-19 market disruption. A trading member defaulted on margin obligations, prompting Yes Bank to liquidate collateral securities in its capacity as a professional clearing member.
The judgment, reported on September 12, 2026, ruled that Yes Bank committed no statutory violations. The court clarified that a clearing corporation's authority to order restitution must be explicitly granted by statute and cannot be inferred from general disciplinary powers.