The persisting instance of credit-quality issues with the debt instruments held by mutual funds have kept MF investors jittery.
The latest one is with unrated bonds issued by Adilink Infra & Multi trading, a subsidiary of Essel Group, which defaulted on the repayment to a minority investor. These distressed non-convertible debentures (NCDs) issued by Adilink mature in March 2020. Aditya Birla Sun Life Mutual Fund holds 98.65 per cent of the debentures and the remaining is held by another minority investor.
On November 25, Aditya Birla Sun Life Mutual Fund came to know that the issuer failed to honor the payment to the minority investor when the minority investor exercised the put option. A put option gives the holder the right to sell assets at an agreed price on or before a particular date.
Denne historien er fra December 02, 2019-utgaven av The Hindu Business Line.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
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Denne historien er fra December 02, 2019-utgaven av The Hindu Business Line.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
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