HDFC AMC to provide liquidity for some MF plans
HDFC Asset Management Company
(HDFC AMC) on June 17 has decided to provide a liquidity arrangement to
certain fixed maturity plan schemes of HDFC Mutual Fund (collectively
FMP Schemes), to deal with the illiquidity faced by such FMP Schemes due
to their exposure to the Non-Convertible Debentures (NCDs) issued by
Edisons Infrapower & Multiventures Private Limited and Sprit
Infrapower & Multi ventures Private Limited, companies promoted by
the Essel group (collectively "Essel Group Companies").
This liquidity arrangement shall only apply in case of FMP Schemes (having an exposure to the NCDs issued by the Essel Group Companies) which have either already matured in the month of April 2019 and/ or will mature till the standstill arrangement entered into by the Company with Essel Group Companies is in force, the company said in the filing.
Provision of such liquidity arrangement will entail acquisition by the company of NCDs issued by the Essel Group Companies held by such FMP Schemes at the prevailing valuation as on respective maturity/purchase dates.
The liquidity arrangement may involve an aggregate outlay not exceeding Rs500cr and will be put in place shortly, the company stated.
Provision of this liquidity arrangement is without prejudice to the validity of the Company's action of entering into the abovementioned standstill arrangement.
Such liquidity arrangement is in the larger long term interest of the company and is being undertaken purely as a measure to provide liquidity to the relevant unitholders.
This liquidity arrangement shall only apply in case of FMP Schemes (having an exposure to the NCDs issued by the Essel Group Companies) which have either already matured in the month of April 2019 and/ or will mature till the standstill arrangement entered into by the Company with Essel Group Companies is in force, the company said in the filing.
Provision of such liquidity arrangement will entail acquisition by the company of NCDs issued by the Essel Group Companies held by such FMP Schemes at the prevailing valuation as on respective maturity/purchase dates.
The liquidity arrangement may involve an aggregate outlay not exceeding Rs500cr and will be put in place shortly, the company stated.
Provision of this liquidity arrangement is without prejudice to the validity of the Company's action of entering into the abovementioned standstill arrangement.
Such liquidity arrangement is in the larger long term interest of the company and is being undertaken purely as a measure to provide liquidity to the relevant unitholders.
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