The Bombay Stock Exchange (BSE) and National Stock Exchange of India limited (NSE) has halted trading in the shares of Dewan Housing Finance Corporation Limited (DHFL). The ban will come into force on the 14th of June, both of the stock markets that are denominated in the respective circular.
The BSE and the NSE, the circular stated that the DHFL informed the exchanges on the 8th of June, for the approval of the decision of the plan by the National company law Tribunal (NCLT) which provide for a de-listing of the company’s shares for shares.”
A resolution plan to the NCLT, at the time of the Piramal Group of the successful implementation of the DHFL had in mind, the zero value of the DHFL stock. In spite of this, the shares were allowed to do their shopping.
The circular issued by NSE BSE said, adding that DHFL on June 9, stated that “there is no value has been assigned to the ordinary shares, in accordance with the liquidation value of the company is evaluated by means of the registration of assessors, who are going to be drawn up in accordance with the Rules of the Insolvency and the Bankruptcy of the Council of India (Insolvency, winding-up process of the legal entity) 2016”.
In addition, the company is also to be noted that the written orders of the NCLT to approve the decision on the plan is still on-going, and all of the information that is the subject of such an order, the circular said.
In accordance with the regulation 3.1.2 of the National Stock Exchange (capital market), and for the reasons set out above me, and this information is available to the next of the securities ceased to act of June 14, 2021 (that is, in the first and last hours of trading on June 11, 2021),” the NSE said in a statement.
DHFL shares may be trading in the past week. It has been decided to increase by 10% (with a maximum compatible with the existing range). NSE alone has sold more than 14 crore shares, and on the 8th of June, investors to take delivery of a further 9 crore shares worth about Rs 200 crore.
The shares will continue to trade on both exchanges, despite the fact that the company has officially listed on the stock exchange, the stock price is equal to zero. On June 9, it sold 5 million shares outstanding. This criticism, which is caused by the market experts, who are appealing to the stock exchange to suspend trading in the DHFL shares as soon as possible, in order to protect the interests of investors in securities market.
DHFL, one of the non-financial corporation for housing finance, the victim of the crisis in mid-2019. The use of Commercial paper, the company’s long-term debt decreased to D’, which means that they have ended in June of the same year. The company was founded by defaulting on a payment, and it was estimated to have paid Rs 90,000 crore to its creditors in the moment, and then went out of business.
In November 2019, the Reserve Bank of India, informed, DHFL, for a decision under the Insolvency and Bankruptcy Code (IBC). It was the third-largest network, to play a mortgage lender is charged according to the IBC, and the first financial company to the central bank, which is referred to the NCLT.