Reliance Mutual Fund (RMF) said late on Sunday it was writing down the value of its holdings in Reliance Commercial Finance (RCFL) and Reliance Home Finance (RHFL) consequent to the rating downgrade of the non-banking finance companies their group.
“….till maturity of the instruments, and in line with Sebi regulations, there will be a mark-to-market valuation impact on the above exposure, basis revised valuation provided by independent valuation agencies, with corresponding impact on NAVs of schemes holding these investments,” RMF said in a release.
Over the weekend, Care Ratings downgraded RHFL’s long-term debt programme of Rs 4,979 crore to default due to delay in servicing bank debt.
The company added,“based on the above, and considering the adequate security held by RMF and short tenor of most of its above exposures, RMF believes that the interests of its investors are fully protected.”
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