BSE and NSE issued separate circulars on Friday saying that they will stop trading in DHFL shares on June 14. Under the resolution plan approved for DHFL, the equity shares of the company will have to be delisted from the stock exchanges.
New Delhi. The trading of shares of Dewan Housing Finance Corporation (DHFL) in major exchanges BSE and NSE will be closed from Monday. The move has been taken to avoid market complications amid the approval of the resolution plan of Piramal Group for bankrupt DHFL by the National Company Law Tribunal (NCLT).
The tribunal had on June 7 approved the resolution plan under the Insolvency and Bankruptcy Code. BSE and NSE issued separate circulars on Friday saying that they will stop trading in DHFL shares on June 14. Under the resolution plan approved for DHFL, the equity shares of the company will have to be delisted from the stock exchanges.
The National Company Law Tribunal (NCLT) has constituted a Monitoring Committee for Dewan Housing Finance Limited (DHFL) to oversee the management and control of the company till the implementation of the Piramal Group’s resolution plan. The court has also asked the Committee of Creditors (CoC) to consider the distribution of resolution funds within two weeks. The NCLT has said that the management and control of DHFL will remain with the Monitoring Committee for the period between the date of approval of the court’s resolution plan (June 6) to the date of implementation.
Also read: Veteran industrialist Harsh Goenka reveals 5 reasons why he would never invest in cryptocurrencies in IndiaThe seven-member monitoring committee comprises three representatives nominated by the CoC, two representatives nominated by the successful bidder who took over the company, an administrator appointed by the Reserve Bank of India (RBI) and an observer appointed by the court. Will be. The court has appointed Ashor Kakar, retired commissioner of income tax and former executive director of SEBI, as observer.
Distribution of resolution funds The NCLT has suggested the CoC to reconsider the distribution of resolution funds among various creditors. NCLT believes that small investors should be given more amount. It has asked the NCLT to inform about this within two weeks from the date of the order.
Also read: A new tunnel connecting Jammu to Srinagar is going to be ready, 5 things you should know
Further, the NCLT has said that non-agreed financial creditors (ICICI Bank, FD holders and debenture holders) should be paid lump sum cash, not debt securities.
The total offer in Piramal Group’s resolution plan is Rs 37,250 crore. This includes a one-time cash payment of Rs 12,700 crore to creditors.