Leading exchanges BSE and NSE will suspend trading in the shares of Dewan Housing Finance Corporation Ltd (DHFL) with effect from Monday.
The move, aimed at avoiding “market complications”, comes against the backdrop of the National Company Law Tribunal (NCLT) approving Piramal Group’s resolution plan for the bankrupt-DHFL.
The resolution plan under the Insolvency and Bankruptcy Code (IBC) was approved by the tribunal on June 7.
In separate but similarly-worded circulars issued on Friday, BSE and NSE said they would suspend trading in the shares of DHFL with effect from June 14.
The approved resolution plan provides for delisting of equity shares of the company.
As per the circulars, the company made an announcement on June 9, saying that “no value was attributable to the equity shares as per the liquidation value of the company estimated by registered valuers appointed under the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016”.
According to the circular issued by BSE, “to avoid market complications, trading in the securities of Dewan Housing Finance Corporation Limited will be suspended w.E.F June 14, 2021”.
In November 2019, Reserve Bank of India (RBI) had referred DHFL -- then the third-largest pure-play mortgage lender -- for resolution under the IBC. It was the first finance company to be referred to the NCLT by RBI using special powers under Section 227 of the IBC.