DHFL gets Sebi nod for exiting MF arm, sell its stake to JV partner

As per regulatory norms, fund house will have to give load-free exit window to investors; expets advise staying put in order to look for recovery

Debt-laden Dewan Housing Finance Corporation (DHFL) has received approval from the Securities and Exchange Board of India (Sebi) to exit its mutual fund (MF) business DHFL Pramerica MF, by selling its 50 per cent stake to its joint-venture partner Prudential Financial. 
 
"We are happy to receive the final approval from Sebi. We now need to complete a few more formalities, including giving a load-free exit window to investors, in line with the Sebi requirement, for change in control and other fundamental attribute changes," said Ajit Menon, chief executive officer of DHFL Pramerica.
 
Sebi norms require a fund house