INSUBCONTINENT EXCLUSIVE:
Shares of Dewan Housing Finance Corporation (DHFL) declined over 4 per cent intraday on Thursday after the Reserve Bank of India on
Wednesday placed the beleaguered NBFC under an administrator and said the resolution process will begin shortly.
DHFL is set to become the
first NBFC or housing finance company (HFC) to go for bankruptcy resolution
The central bank also superseded the board of the third largest pureplay mortgage lender, citing governance issues and severe liquidity
crisis which led to a string of defaults.
The RBI also appointed Indian Overseas Bank's former managing director and CEO R Subramaniakumar
as its administrator.
"We also intend to shortly initiate the process of resolution of DHFL under the insolvency and bankruptcy code and
move comes after the Centre on November 15 empowered the central bank to refer stressed NBFCs and HFCs having assets worth at least Rs 500
crore to insolvency court.
DHFL is one of India's top defaulters, and owes close to Rs 1 lakh crore to its debtors, which include banks
and mutual funds, Reuters reported.
The shares of the company later recovered and closed 4.96 per cent higher at Rs 21.15 on BSE.