Vaibhavi Khanwalkar chats with Moneycontrol Deputy Executive Editor, Ravi Krishnan to understand if DHFL's move will worsen the NBFC crisis.
DHFL has said it will honour all pre-mature deposit withdrawal requests in case of medical or financial emergencies
The cash-strapped company has about Rs 8,400 crore of loan repayments and securitisation payouts coming up in the two months.
In a regulatory filing, DHFL said that over the last one week there has been a lot of unwarranted speculations in the market about continuous weakening of DHFL's credit profile as a servicer.
Rating downgrades cast doubt on the debt repayment prospect of companies and tend to create panic among investors.
SEBI has prescribed a limit on the exposure that a mutual fund can have to a single group.
The breadth of the market favoured the declines as 753 stocks advanced and 955 declined while 380 remained unchanged. On the BSE, 1,130 stocks advanced, 1,316 declined and 183 remained unchanged.
The top Nifty gainers include Tata Steel, Cipla, Eicher Motors, UltraTech Cement and Vedanta while State Bank of India, Power Grid, Britannia Industries, Tata Motors and Zee Entertainment are the top losers.
The top Nifty gainers include Cipla which jumped over 3 percent followed by Tata Steel, JSW Steel, Bajaj Finance and Adani Ports while State Bank of India, Power Grid, Britannia Industries, Tata Motors and HCL Tech are the top losers.
The stock gained more than 16 percent in last one month, though in one year it lost 71 percent.
An auditor last week dismissed media allegations that DHFL had created shell companies to divert funds, but said the firm's monitoring of loans was inadequate, raising risks that some of them would turn sour.
DHFL noted that it is in the process of strengthening its governance structure by appointing new independent directors and reconstituting its Board Committees and shall announce the same by March 31, 2019.
The breadth of the market favoured the declines with 764 stocks advancing and 774 declining while 514 remained unchanged. On the BSE, 773 stocks advanced, 684 declined and 73 remained unchanged.
The top gainers from NSE included Wipro which jumped 3 percent followed by Indiabulls Housing, ICICI Bank and Adani Ports while the top losers included Sun Pharma, Tata Motors, Coal India, Hero Moto and Bajaj Auto.
"There is no evidence of DHFL forming shell companies to divert funds, promoters hiding shareholding in any companies and insider trading", said a report by chartered accountant firm TP Ostwal & Associates.
ICRA said it revised the short-term rating outstanding for the Rs 8,000-crore commercial paper (CP) programme of DHFL to A2+ from A1+. As on date, DHFL has CP outstanding of Rs 1,525 crore
Volatility in DHFL is very high, an Iron Condor trade to fall in volatile.
A Double Bottom and Head and Shoulder bullish pattern in DHFL can give its a meaningful push.
DHFL Chairman Kapil Wadhawan may step down from active management after the stake sale
"However, he would continue to be associated with the company and shall hold the designation of Executive President -Retail Business with effect from February 14, 2019," DHFL said in a regulatory filing on stock exchanges.
Recently, Cobrapost alleged that Dewan Housing Finance Corporation Ltd (DHFL) through layers of shell companies allegedly siphoned off Rs 31,000 crore out of the total bank loans of Rs 97,000 crore.
A 5-minute wrap of the key happenings in the market this week.
The real estate sector is at an inflection point and staring at long-due price correction in order to improve sales, the report stated
DHFL may either sell a part of its stake or exit the life insurance company