DHFL shares fell 4.82 pc after NCLT admits RBI petition

DHFL shares fell 4.82 pc after the National Company Law Tribune admits RBI's petition to initiate insolvency proceedings

A bird flies past a signboard of Dewan Housing Finance Corporation Ltd. (DHFL) outside its office on the outskirts of Mumbai, India, January 31, 2019. (Reuters Photo)

Shares of Dewan Housing Finance Corporation on Tuesday fell nearly 5 per cent to hit lower circuit after NCLT admitted the RBI's petition to initiate insolvency proceedings against the mortgage firm.

Shares of the troubled firm fell 4.82 per cent to trade at Rs 18.75 on the BSE.

On the NSE, the stock fell 4.81 per cent to Rs 18.80.

The National Company Law Tribunal (NCLT) on Monday admitted the Reserve Bank's petition to initiate insolvency proceedings against mortgage player DHFL, making it the first financial services firm to be resolved through the bankruptcy code.

The move came in after the Reserve Bank last Friday referred DHFL to the NCLT Mumbai to resolve the debt crisis at the third largest pure-play mortgage player, which owes close to Rs 1 lakh crore to the system, mostly to banks and retail investors of its debt instruments.

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