Relief for Nippon India MF as SAT sets aside Irdai order in pledging case

Nippon India Mutual Fund (MF) has bought aid from the Securities Appellate Tribunal (SAT) on Thursday in a pledging situation the place the fund residence had extended maturity of non-convertible debentures (NCDs) of former group firm — Reliance Property Finance (RHF) — against pledging of Reliance Capital’s (RCap’s) keeping in Reliance Basic Insurance policy Corporation (RGICL).

The matter pertains to NCDs of RHF, which have been maturing on June 28, 2019. The dwelling finance firm was not able to meet its payment obligations. Subsequently, the maturity was extended to Oct 31, 2019, against added security of RCap’s keeping in RGICL.

Even more, a company ensure was presented by RCap and the ‘put option’ appropriate was presented to the NCD holders. This intended RCap would be needed to order the NCDs when the choice is exercised.

Nippon India MF exercised the ‘put option’ prior to the maturity of NCDs. The fund

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