No F&O contracts for Yes Bank from May 29

“Due to the recent development in Yes Bank Limited it has been decided that no fresh or renewal of Bank Guarantees and Fixed deposit receipt issued by Yes Bank limited shall be accepted,” the NSE circular said.

The existing benefit provided to members towards bank guarantees and fixed deposit receipt issued by Yes Bank Limited in favour of NSE Clearing Limited shall be reduced, the bourse added.

“The financial position of Yes Bank has undergone a steady decline largely due to inability of the bank to raise capital to address potential loan losses and resultant downgrades, triggering invocation of bond covenants by investors and withdrawal of deposits. The bank has also experienced serious governance issues and practices in recent years which have led to a steady decline of the bank,” NSE said.

The move comes after the Reserve Bank of India on Thursday placed India's fifth largest private sector bank Yes Bank under a moratorium, superseding its board for 30 days, and imposing a withdrawal limit of Rs 50,000.

The RBI has appointed former SBI chief financial officer Prashant Kumar as administrator for YES Bank.

CNBC-TV18 has learned that State Bank of India (SBI) and Life Insurance Corporation of India (LIC) are likely to pick up 24.5 percent stake each in Yes Bank in a government- and RBI-approved bailout of the beleaguered private-sector lender.

Shares of Yes Bank dropped 85 percent to its 52-week low of Rs 5.55 on the BSE.