Mutual funds want to join with DHFL Resolution Process:
Ajay Tyagi, chairman of SEBI, said that on 20th Nov 2019, The mutual funds want to link up with the DHFL resolution based on the scheme of the law of insolvency.
At present the DHFL company in a critical point. Previously it is the most import company in the housing finance space. On 20th Nov, The Reserve Bank of India substituted the DHFL.
After awareness about the financial problems of DHLF, mutual funds donate a major part of the amount to this company.
According to the Insolvency and Bankruptcy Code (IBC), the mutual funds regarded as a moneylender for DHFL resolution. The government declared the generic framework of the declined financial services. The financial service providers are also considering under the IBC.
There is a variance between the IBC and ICA, the mutual funds come under the IBC. The central bank and akin managed organizations will exceed the court sentiment are comes under the ICA. And also for the asset previously approaching to the NCLT (National Company Law Tribunal) are under the ICA.
According to Ajay Tyagi, SEBI gives a choice for mutual funds to join with the ICA. If in case they will join in the ICA, it needs a clearance about the Stock of toxic assets.
SEBI said that, If the case the clearance will appear the mutual funds doesn’t similar to bank frames.
DHFL has approximately Rs 1 lakh crores debits. Mr. R Subramaniakumar, appointed as administrator to the DHFL by RBI. He was previously worked as a managing director of Indian Overseas Bank.