Comments
UTI Mutual Fund has received the entire payment of ₹44 crore (along with interest accrued to date) due from Zee Learn.
On July 7, UTI Mutual Fund created a segregated portfolio of Zee Learn debt securities in UTI Credit Risk Fund and UTI Medium Term Fund due to the downgrade of these securities to below investment grade.
The recovery proceeds, in proportion to investors’ unitholdings, will be credited to investors’ bank accounts, said the fund house.
Last Monday, the Bombay High Court dismissed Zee Learn’s petition seeking moratorium on payments due on the NCDs.
Zee Learn, in its petition, had argued that moratorium provisions granted by Reserve Bank of India extend to bonds as well and should be granted by the fund house.
However, the Court ruled that Zee Learn cannot be granted any relief on the basis of the RBI circular, which does not apply to mutual funds.
The Bombay High Court ruling comes as a major relief for mutual funds with debt securities of many companies coming up for redemption this fiscal.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.