Finance Update

Kotak MF: List of FMPs exposure to Essel Group and IL&FS maturing in April and May

​​According to reports, HDFC FMP 1168D MF scheme is extended by the company by 380 days. ​

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Apr 11, 2019, 07.23 PM IST

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The financial crisis at

Essel Group

Subhash Chandra-promoted Zee group’s has already affected debt investors of Kotak Mutual Fund, as the money manager has delayed the full redemption of its FMPs. Now, HDFC Mutual Fund has decided to rollover one of its fixed maturity plans that is coming up for redemption on April 15.

According to reports, HDFC FMP 1168D MF scheme is extended by the company by 380 days.

The mutual fund industry has a debt exposure of Rs 7,500 crore to the Zee or Essel Group. Of this, around Rs 1,500 crore is in fixed maturity plans with the rest in open-ended debt mutual fund schemes. Kotak and HDFC Mutual Fund hold most of the debt in fixed maturity plans.

Last October’s non-banking financial sector crisis sparked by the collapse of IL&FS led to serious liquidity crisis with many firms unable to roll over and refinance short-term debt. Shares of firms with high debt and finance companies with high proportion of short-term debt were hammered on the bourses. The Essel Group’s private unlisted infrastructure companies were among those unable to raise debt and this affected Zee Entertainment shares which collapsed.

Below is a list of FMPs having exposure to Essel Group and IL&FS and will mature in April and May:

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