In a written communication to investors Reliance, Mutual Fund has said that it has marked down 100 percent on debt securities of Dewan Housing Finance Ltd (DHFL) for which the scheduled maturity was on June 4.
“We have taken a hundred percentage haircut in securities where the scheduled maturity was 4th June 2019. For all other securities wherein payments have now not fallen due, however, are rated Default Grade (D), we have marked down our investments by using seventy-five percent in keeping with valuation groups,” Reliance Mutual Fund stated in a note to buyers.
For the schemes maturing on June 4, Reliance Mutual Fund stated,” The organization (DHFL) has because repaid its responsibilities towards adulthood associated repayments for the ZCB developing on 04/06/2019 bearing ISIN Number: INE202B07AU7, these days, i.E., 07/06/2019. For the FMPs which have matured, the equal shall be remitted to buyers eventually. “
Further, assets at the fund residence confirmed that Reliance Nippon Life AMC (RNAM) had obtained the charge from DHFL securities and RNAM pays proportionately to all the unitholders of FMPs maturing on June 6 within the subsequent two operating days.
On June four, DHFL became to pay hobby and principal payments to the tune of Rs 1,160 crore to all the bondholders. DHFL was not able to make the payment of principal and interest until cease of the day (June 6) and requested for a seven-day grace length.
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 delay in debt servicing because of insufficient liquidity, modest capital function, and decent profits.
The rating revision took into account the put off in servicing of duties with recognize to a number of the NCDs through DHFL due to prolonged liquidity pressure.
Reliance Mutual Fund has global investments of Rs 478.Ninety-three crore in debt securities of DHFL. Of which, Rs 339. Sixty-eight crores is in open-ended schemes and the stability Rs 139.25 crore in near-ended schemes