Reliance MF Receives a Payment from DHFL, to Pay Money to FMP Investors

In a written communication to investors, Reliance Mutual Fund reported that it had recorded a 100% decline in the debt securities of Dewan Housing Finance Ltd. (DHFL) whose expected maturity was June 4.

"We have opted for a 100% discount on the securities due on June 4, 2019. For all other securities for which the payments have not expired, but are rated as" Default Grade (D) "We have reduced our investments by 75% according to valuation agencies," said Reliance Mutual Fund in a note to investors.

For plans maturing on June 4, Reliance Mutual Fund stated: "The company (DHFL) has since repaid its obligations related to the repayments related to the maturity of the KBA expiring on 04/06/2019 and bearing the ISIN number: INE202B07AU7, today 07/07/2011. For maturing FMPs, this will be returned to investors at a later date. "

In addition, home-based sources of funds have confirmed that Reliance Nippon Life AMC (RNAM) had received payment from DHFL Securities and that RNAM would be paying proportionally to all FMP unitholders maturing on June 6 in the next two months. working days.

On June 4, DHFL was required to pay interest and principal payments of 1,160 rupees to all bondholders. DHFL was not able to pay the principal and interest until the end of the day (June 6) and requested a seven-day grace period.

As a result, CRISIL, ICRA and CARE Ratings downgraded their bonds issued on DHFL Notes / Non-convertible Bonds (NCDs) to a "D" because of the delay in debt service due to insufficient liquidity, a modest capital position and modest profits. .

The rating review took into account the delay by the DHFL in honoring its obligations to certain NTMs due to prolonged liquidity stress.

Reliance Mutual Fund has total investments of 478.93 billion rupees in DHFL debt securities. Of which 339.68 crores of annuity are open plans and the balance of 139.25 crores of annuity in closed plans.

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