Thread by @stepbystep888

thread

On June 4, 2019, DHFL had interest and principal payments due to the tune of ~Rs. 1,100 crores and the company failed to repay on the scheduled date

As per the standard haircut table for sub-investment grade debt securities which has been provided/ finalized by valuation agencies (CRISIL and ICRA) and AMFI, affected AMCs had taken a 75% mark down to DHFL debt securities in the schemes which have an exposure to #DHFL.

@ActusDei @SumairaAbidi @SundaramMF
on 31st May'2019 had the following exposure in #DHFL

@ActusDei @SumairaAbidi @SundaramMF As per SEBI Circular SEBI/HO/IMD/DF2/CIR/P/2018/160 dated 28 December 2018

Segregated portfolio should be created only if the Scheme Information Document (SID) of the scheme has provisions for segregated portfolio with adequate disclosures.

@ActusDei @SumairaAbidi @SundaramMF Question 1:
Why has the @SundaramMF initiated the process of enabling side pocketing in last week of July'2019.
30 day load free exit period expired on 30 August

@TheMFGuy1

@ActusDei @SumairaAbidi @SundaramMF @TheMFGuy1 Question 2 @SundaramMF compliance office
@SEBI_India has clearly said
AMC shall decide on creation of segregated portfoli on the day of credit and segregated portfolio shall be effective from the day of credit event, after taking trustee approval

@ActusDei @SumairaAbidi @SundaramMF @TheMFGuy1 @SEBI_India Question 3:

to protect the interest of affected unit holders why has the Board of Directors and Trustee approved acceptance of subscription in these affected schemes.

@ActusDei @SumairaAbidi @SundaramMF @TheMFGuy1 @SEBI_India Question 4:

why on June 26 and not on June 5th, the AMC temporarily suspended the subscription. Why ad-hoc decisions.

@ActusDei @SumairaAbidi @SundaramMF @TheMFGuy1 @SEBI_India last but not the least:

DHFL NCDs marked down to zero are available as part of the main portfolio, who will protect the interest of unit holders who have taken the hit.

@ActusDei @SumairaAbidi @SundaramMF @TheMFGuy1 @SEBI_India END:

@latha_venkatesh @kayezad @andymukherjee70 @invest_mutual @DeepakRKhemani @AaratiKrishnan @monikahalan @NishanthV_ET @dhirendra_vr @dugalira @rachitaprasadET @deepakshenoy @Funter21510910