RHFL bond investors to weigh legal course
Nippon Asset Management and SBI Mutual Fund were two of the institutional investors in those bonds.
, ET Bureau|
Updated: Nov 15, 2019, 10.27 AM IST
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Debenture holders of the indebted Reliance Home Finance (RHFL) may opt for enforcement of securities under public bond issuance as they met with company representatives on Thursday, according to market sources having investment in those debt securities.
Those bonds are secured in nature. A group of about 60 people voted for select proposals with formal result expected to come out in a day or two. The trustee or custodian of bonds – IDBI Trusteeship – would start taking due legal course once the voting results are out.
A few points that were discussed during the meeting included alleged related-party transactions entered into by the company without adequate disclosures, disposal of RHFL’s securities by its holding company of Reliance Capital and gradual dilution of promoter shareholding in Reliance Capital.
Sapan Kumar Bagchi, CEO of IDBI Trusteeship chaired the meeting.
Nippon Asset Management and SBI Mutual Fund were two of the institutional investors in those bonds.
“In the meeting a few individual investors demanded criminal action as they look desperate to get back their dues,” said a person present in the meeting that took place in SBI headquarters in Mumbai.
RHFL, a subsidiary of ADAG group’s Reliance Capital Limited, made a public issue of nonconvertible debentures (NCDs) in December 2016.
Those bonds are secured in nature. A group of about 60 people voted for select proposals with formal result expected to come out in a day or two. The trustee or custodian of bonds – IDBI Trusteeship – would start taking due legal course once the voting results are out.
A few points that were discussed during the meeting included alleged related-party transactions entered into by the company without adequate disclosures, disposal of RHFL’s securities by its holding company of Reliance Capital and gradual dilution of promoter shareholding in Reliance Capital.
Sapan Kumar Bagchi, CEO of IDBI Trusteeship chaired the meeting.
Nippon Asset Management and SBI Mutual Fund were two of the institutional investors in those bonds.
“In the meeting a few individual investors demanded criminal action as they look desperate to get back their dues,” said a person present in the meeting that took place in SBI headquarters in Mumbai.
RHFL, a subsidiary of ADAG group’s Reliance Capital Limited, made a public issue of nonconvertible debentures (NCDs) in December 2016.
