Top mutual funds risk regulator warth on essel debt deadline pact

Top mutual funds risk regulator warth on Essel debt deadline pact

Subhash Chandra has to repay a billion of dollars in debt. So, the Indias top mutual funds running afoul of the country’s securities regulator has granted more time to media mogul for repayment.

On Thursday, the chairman Ajay Tyagi reiterated the watchdog’s stance,  saying there is no confusion and that all market participants must adhere to the rules.

And also shares the group’s flagship Zee Entertainment Enterprises Ltd have steady since touching a five-year low Monday when the group aforementioned the money managers had agreed to increase the repayment timelines on obligations due by September-end.

But what was unclear is how the extension will be looked at by the regulator, who in June invalidated pacts between funds and their borrowers.

The sales leave a large repayment gap for the conglomerate after the Chandra’s Essel Group has repaid 44.50 billion rupees that is $628 million after selling stake in Zee to Invesco Oppenheimer Developing Markets Fund and divesting solar farms and other non-media assets. 

In January in a single day the first extension, known as stanstill agreement on the sale of the group’s shares pledged as collateral, was granted after Zee’s shares tumbled as much as 37 percent and amid’s worries about the group’s debt, increasing the risk of default.

The Aditya Birla Sun Life Asset Management Co. and HDFC Asset Management Co., including some of the biggest asset managers, hold shares of Zee as collateral against dues owed by Essel Group.

As the Information said by a source representatives for Birla and HDFC mutual funds didn’t respond to any email or phone calls.

 

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