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DHFL insolvency: NCLT appoints panel to oversee resolution plan; trading in shares suspended

Business Standard,   Money Control  

The National Company Law Tribunal (NCLT), while approving the resolution plan of Piramal Group for Dewan Housing Finance Ltd (DHFL) has named a seven-member supervision committee, which will be given the power to manage and control the beleaguered housing financier during the period between the approval of the plan and its implementation. The panel will have three representatives from the committee of creditors (CoC), two representatives nominated by the Piramal Group, and the administrator. In addition, the bankruptcy tribunal will appoint an observer-cum-permanent invitee in the monitoring committee to ensure smooth functioning and change over to the successful resolution applicant. NCLT has appointed Ashok Kakkar, (Retd.) chief commissioner of Income Tax, former executive director, Sebi. Meanwhile, the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE) have suspended trading in equity shares of DHFL. The ban will come into effect on June 14, both the exchanges noted in their respective circulars.