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Sebi letter ends MFs' hopes of joining DHFL resolution process

Regulator makes side-pocket mandatory for resolution process; over 100 exposed schemes fail to make the cut

DHFL
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Jash Kriplani Mumbai
The mutual fund (MF) industry's hopes of becoming part of the resolution process of Dewan Housing Finance Corporation (DHFL) under the inter-creditor agreement (ICA) framework got quashed on Thursday with the Securities and Exchange Board of India (Sebi) clearly stating that only those MF schemes that have already side-pocketed the affected debt exposure can participate in any ICA process.

Sebi was replying to a representation made by the industry body Association of Mutual Funds in India (Amfi), which had asked the regulator if the action of joining DHFL-ICA can itself be sufficient condition to side-pocket exposure to the troubled housing

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First Published: Aug 30 2019 | 6:49 PM IST

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