Affected HDFC FMP investors may soon be able to withdraw their investment at market valuation.
In a statement to exchanges on June 17, HDFC MF announced that it would provide liquidity facility to certain FMPs having exposure to the two troubled Essel Group companies viz. Edisons Infrapower & Multiventures Pvt. Ltd. and Sprit Infrapower & Multiventures Pvt. Ltd.
This facility will only be applicable to the affected FMPs who have already matured in April 2019 or will mature before the expiry of the standstill arrangement (until September 2019) between HDFC MF and Essel Group, said the fund house in a statement on Monday.
On the respective date of maturity or purchase of the FMP, The fund house will buy the NCDs from the scheme’s book at current market valuation. The liquidity arrangement would involve an outlay of Rs. 500 crore and would be put in place soon, said the fund house in a press release.
The fund house earlier came under the regulator’s radar for asking investors to rollover their FMPs having exposure to Essel Group to reduce their loss.
