Everything a DHFL FD and NCD holder needs to know

I would start by admitting that I hold some NCDs of DHFL.

I had an account with HDFC Securities and back in those days I just trusted the relationship manager and put money upon his saying without asking any questions. One of the reasons was he hailed from a place close to my hometown. So you form such biases, a trust. I made a mistake there. I have nothing against him, but later I realized that no one can manage your money better than you and the only way out is you have to learn. There is no other way. You have to know yourself first in a better way in order to venture out. I started reading online what is this and that and slowly I shifted my account to Zerodha to switch on DIY mode.

Coming back to the DHFL case, the NCDs are trading at a discount and it is a notional loss as of now. Recently I read an article by Sucheta Dalal (the same person who exposed Harshad Mehta Scam) that DHFL FD and NCD holders would have to take a haircut. Please note this article is a month old and the voting is over and Piramal has won the bidding for DHFL.

This haircut news came to me as a surprise as my ex-relationship manager had told me that NCD is secured and it’s a AAA rating, unlike an FD which is unsecured. After reading the article and watching the video, it has become even murkier with the possible underlying vested interests at the cost of retail investors.

Currently, 63 moons, one of the largest investors in DHFL NCDs is leading the legal battle. I had even sent an email to 63 moons about how to join the fight but didn’t get any response.

@Bhuvan @nithin you have covered the Franklin Templeton case in every detail.

Can I request you to update this thread from time to time as the DHFL case progresses like you covered the FT case?



Well yes both FD and NCD holders will have to take haircut. As such most of the secured lenders including banks are going to take big haircut. Based on accepted resolution plan and preliminary distribution plan, following is expected:

  1. FD and NCD holder with investment less than 2 lakh should be getting 90-100% of principal
  2. Remaining NCD holder should be getting back around 40%
  3. Remaining FD holders should get back around 25%
    Off course, number might change slightly. if you are holding NCD in demat form, Catalyst trusteeship would have sent you a mail providing access to Smartrooms.
    There generally COC meeting and IBC process updates are available.
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I remembered something uncanny with DHFL NCD which I would like to share -

When the Public Issue came out in 2018, my Mutual Fund Distributor, asked me to invest in it. He was rather pushy about it.

Yes, like many I too started off with an MF distributor and with regular mutual funds. Later when I started reading, I realized his commissions are not based on how the funds are performing but instead adding to my cost with higher TER regardless of the fund’s performance. That too he had signed me up for multiple ELSS funds with 3-year lock-in and 1 retirement fund where the lock-in is 5 years saying the locked-in funds perform better because people can’t exit soon with a little hiccup of market. Later, when I realized I have been trapped, I confronted him and broke up with him. It’s quite painful to wait for the locked-in units to release so you can exit from them and clean up your portfolio. This was another lesson for me to realize everyone else who wants to manage your money, has their vested interest, and only if you are aware of what it is for them and how much, etc and if you accept it fully, only then proceed.

All new investors, please beware of MF distributors trapping you with ELSS funds where you have to wait out to get out. @nithin, one more reason I back the idea of a Nifty 50 based ELSS fund by Zerodha AMC (hopefully soon) because even if it would have a lock-in of 3 years as any ELSS fund has, the investor is actually investing money on India’s economy, which is a good cause, unlike betting on the biases of any active fund. One can be bullish on India forever and thus I had said that the Nifty 50 based ELSS fund can double up as a retirement fund corpus as well.

Coming back to the DHFL NCD incident, so my MF distributor was a little pushy about it. I said, okay I would do it online. But he insisted I apply by filling paper form. I don’t like paperwork so I was a little hesitant. I said it’s too much work whereas I can do the same with a single click of a button in my Demat account.

He then told me that he would get a commission if I fill a paper form citing his Agent code and apply for the DHFL NCD. I asked how much he would get. He said 10%. If I apply for 50k, he would get 5k. And he was willing to share a part of that commission back with me. Imagine!

There are a few times in my life I have gone against my intuition and this was one of them. It rang an alarm in my heart that 10% commission for just signing up. There’s something fishy. But somehow I didn’t listen to it completely. If only. Though I didn’t fill the paper form and didn’t apply through my MF distributor, but later when my HDFC Securities Relationship Manager called me and asked me to put in it since it has AAA ratings, I somehow snoozed the alarm and gave in.

I am sharing my personal experiences and mistakes so people know how you are played out in the market. How our minds trick us sometimes. A lesson here is if someone is trying too hard to sell you something, please stay away. There must be some catch. Find out. Discover better things that are not shouting and nobody is paying attention to them. There can’t be a better way. Also, if everyone is running in the same direction doesn’t necessarily mean it’s the right way.


I really say thanks to @rupeshmandal posting such investor awakening posts. i don’t miss your posts, it help me to increase knowledge.
I’m not a investor of any ncd, but following this post will increase my knowledge.
BTW, some days back, i have read a good article somewhere (didn’t remember the web address) in which the writer explained in detail how rating is not trustworthy, & how manipulation worked in that industry. he explained very well that believing on AAA rating is dangerous.so in short i agree with you, the only man who really help you in investing is “YOU”. so there is no any alternate option for learning abcd of investing.
thanks again.



RBI approves Piramal’s DHFL plan, resolution plan to be submitted to NCLT within a week.

While RBI’s nod has come in, every eye is on what happens next in NCLT where FD and NCD holders would oppose the decision.

In other news, Dr. Subramanian Swamy has filed a PIL in the Supreme Court against RBI to investigate its role in 10 scams in India.


In all likelihood, you will have to take the write-offs. I don’t think much will come of the cases.

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Still this case deserves to be followed-up equally like the Franklin Templeton case was covered by you. No?

Will post updates, sure

One more update: