YES BANK Ltd.was granted in-principle approval from the Securities and Exchange Board of Indiato act as a custodian of securities.

The bank said May 5 that it will now register with SEBI as acustodian of securities and establish the business within 12 months.

YES BANK has already been granted approval from the Reserve Bankof India to establish the custodian of securities business.

A custodian of securities license will enable YES BANK to offercustodial services to financial market participants, including foreign institutionalinvestors and foreign portfolio investors.