Reliance MF gets payment from DHFL, to pay off money to FMP investors

In a written communication to investors Reliance Mutual Fund has said that it has marked down 100 percent on debt securities of Dewan Housing Finance Ltd (DHFL) for which the scheduled maturity was on June 4.

“We have taken 100 percent haircut in securities where the scheduled maturity was 4th June 2019. For all other securities where payments have not fallen due, but are rated Default Grade (D), we have marked down our investments by 75 percent in line with valuation agencies,” Reliance Mutual Fund said in a note to investors.

For the schemes maturing on June 4, Reliance Mutual Fund said,”The company (DHFL) has since repaid its obligations towards maturity related repayments for the ZCB maturing on 04/06/2019 bearing ISIN Number : INE202B07AU7, today i.e. 07/06/2019. For the FMPs which have matured, the same shall be remitted to investors subsequently. “

Further, sources at the fund house confirmed that Reliance Nippon Life AMC (RNAM) has received the payment from DHFL securities and RNAM will pay proportionately to all the unit holders of FMPs maturing on June 6 in the next two working days.