It has been decided by NSE and BSE that they have decided firmly to suspend the trading in the equity shares which is of DHFL (Dewan Housing Finance Corporation) which is going to be in effect from 14th June that is on Monday and the circulars have been issued by both of the exchanges for the same.
Dewan Housing Finance Corporation
It has been stated that DHFL has already informed about the exchanges that are going to be there from 8th June which is regarding approval of the resolution that is the plan of the Mumbai bench which is of National Company Law Tribunal that is NCLT which is the provider for the listing of the equity shares of a company.
It has also been stated by the company dating to 9th June no value has been attributable in regards to the equity shares which is in direct regard to liquidation value which is of the company and that has been estimated through the valuers that are registered and this has led to the bankruptcy and insolvency which is according to the regulation.
It has a direct connection with the pursuance of regulation 3.1.2 according to the National Stock Exchange and trading regulations part A, including the points that have been stated earlier it has been notified that the security is going to be suspended in regards to trading, and this was stated in the circular of NSE.
It seems like DHFL has been pretty counteractive in recent times and throughout the week it seems like that counter hit is going to keep hitting the lower circuit, the circuit has also been revised to have 10% as its limit as compared to the earlier limit of 5% but it seems like that they had to cut back to the earlier numbers and that is the reason that about 30 lakh shares were getting traded of DHFL on Friday.
Since September 2019 the housing finance company has been in the spotlight, during the crisis of IL&FS, DHFL’S commercial papers were being downgraded after it went on to get defaulted in regards to series of payments and it seems like that the company has gone to be bankrupt and is owing about Rs.90,000 crores to all of the lenders after it became the first firm that deals with financial services which have been taken out of NCLT.