On June 14, 2021 (Monday) both BSE and NSE will suspend all trading activities in debt-ridden stock Dewan Housing Finance (DHFL) Both exchanges (BSE and NSE) have issued circulars regarding the trading suspension activities in DHFL stock.
The issued circular by DHFL company to the NSE and BSE exchanges on June 8, stated regarding approval of the resolution plan by the NCLT (Mumbai Bench of National Company Law), provided for equity share delisting of the company.
“Further, the company vide announcement dated June 9, 2021 stated 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,” the added.
On June 9, 2021, the company vide announcement stated that no value attributable to the DHFL equity share as per the liquidation value of the DHFL company estimated by registered valuers appointed under the Insolvency and Bankruptcy Board of India Regulations, 2016.
NCLT has approved the resolution plan by Piramal Group for DHFL, leading to zero value for the shares of DHFL. Despite this, the stock was being actively traded. However, the corporate has also mentioned that the written order of the NCLT approving the resolution plan remains awaited and every one disclosures made remain subject to such orders.
DHFL share has been a really active counter recently. The counter hit lower circuit (LC) limits throughout the week. The bourses revised its circuit limit to 10 percent from 5 percent earlier but had to again crop those levels to the sooner levels. Over 30 lakh shares of DHFL were traded on Friday 11 June 2021.
Since September 2019, the housing finance firm was within the spotlight when the IL&FS crisis broke out. The commercial papers of the DHFL company were downgraded after it defaulted on a series of payments.