BSE Sensex, NSE to suspend trading in DHFL shares from today
BSE Sensex and NSE will suspend trading in the shares of Dewan Housing Finance Corporation Ltd (DHFL) with effect from Monday, in a move aimed at avoiding "market complications”. It comes after the National Company Law Tribunal (NCLT) approved the Piramal Group's resolution plan for the bankrupt-DHFL. The resolution plan under the Insolvency and Bankruptcy Code (IBC) was approved by the tribunal on June 7.
BSE Sensexand NSE said in separate but similarly-worded circulars issued on Friday that they would suspend trading in the DHFL shares with effect from Monday. The approved resolution plan provides for delisting of equity shares of the company.
The circular issued by BSE said, "to avoid market complications, trading in the securities of Dewan Housing Finance Corporation Limited will be suspended w.e.f June 14, 2021".
DHFL, according to the circulars, made an announcement on June 9, saying that "no value was attributable to the equity shares as per the liquidation value of the company estimated by registered valuers appointed under the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016".
The Reserve Bank of India (RBI) referred DHFL, which was then the third-largest pure-play mortgage lender, for resolution under the IBC in November 2019. DHFL was the first finance company to be referred to the NCLT by RBI using special powers under Section 227 of the IBC.
DHFL went bankrupt with more than ₹90,000 crore in debt to various lenders, including banks, mutual funds and individual investors, who kept fixed deposits with the company.
(With agency inputs)