Freeze on Yes Bank’s 25.6% stake in Dish TV spooks private lenders

Private credit lenders who often provide finance against pledge of shares are rattled that they will not be able to exercise their rights as lenders, if a police move freezing Yes Bank NSE 2.47 %’s 25.6% stake in Dish TV NSE 2.68 % sets a precedent.

On Tuesday, the Supreme Court will hear Yes Bank’s appeal against an Allahabad High Court order that dismissed the lender’s plea seeking to lift the freeze on its voting rights in Dish TV, which is operated by Subhash Chandra’s Essel Group. At the high court, Yes Bank had challenged a move by Uttar Pradesh’s Gautam Buddh Nagar crime branch last week to freeze its voting rights in Dish TV.