DHFL Shares Fall Nearly 5% as RBI Starts Insolvency Resolution Process

New Delhi: Shares of Dewan Housing Finance Corporation on Monday fell nearly 5 per cent to hit lower price band after the RBI filed an application to initiate the insolvency resolution process against the company.

Shares of the troubled firm fell 4.83 per cent to trade at Rs 19.70 on the BSE. On the NSE, the stock fell 4.83 per cent to Rs 19.75.

The Reserve Bank on Friday sent the troubled mortgage lender Dewan Housing Finance (DHFL) for bankruptcy proceedings, making it the first financial services player to go to the NCLT for a possible debt resolution.

"The Reserve Bank today (Friday) filed an application for initiation of corporate insolvency resolution process (with the NCLT Mumbai) against DHFL under Section 227 of the insolvency and bankruptcy code," the RBI had said in a statement.