In a written, verbal exchange to traders, Reliance Mutual Fund has stated that it has marked down one hundred percent on Dewan Housing Finance Ltd (DHFL), for which the scheduled adulthood was on June four. We have taken a hundred percentage haircut in securities in which the planned maturity changed into June 4, 2019. For all other deposits wherein payments have no longer fallen due but are rated Default Grade (D), we’ve got marked down our investments through 75 percent consistent with valuation businesses,” Reliance Mutual Fund stated in a note to traders.
For the schemes maturing on June 4, Reliance Mutual Fund said,” The organization (DHFL) has for the reason that repaid its duties closer to maturity related repayments for the ZCB maturing on 04/06/2019 bearing ISIN Number: INE202B07AU7, today i.E. 07/06/2019. For the FMPs which have grown, the identical will be remitted to buyers in the end. “
Further, resources at the fund house confirmed that Reliance Nippon Life AMC (RNAM) had acquired the charge from DHFL securities. RNAM can pay proportionately to all of the unitholders of FMPs maturing on June 6 within the next running days.
On June 4, DHFL turned into paying hobby and principal payments to the song of Rs 1, a hundred and sixty crores to all bondholders. DHFL could not make the payment of main and hobby until the stop of the day (June 6) and asked for a seven-day grace duration.
As a result, CRISIL, ICRA, and CARE Ratings downgraded their score on DHFL’s Commercial Paper (CP)/Non-Convertible Debentures (NCD) to “D”, based totally on put off in debt servicing because of inadequate liquidity, modest capital role, and modest earnings.
The score revision took into account the postponement in servicing responsibilities with appreciation to a number of the NCDs with the aid of DHFL due to extended liquidity pressure.