# Everything a DHFL FD and NCD holder needs to know
**URL:** https://tradingqna.com/t/everything-a-dhfl-fd-and-ncd-holder-needs-to-know/102572
**Category:** General
**Created:** [February 17, 2021, 7:06pm UTC](https://tradingqna.com/t/everything-a-dhfl-fd-and-ncd-holder-needs-to-know/102572 "2021-02-17T19:06:55Z")
**Posts on this page:** 20
**Page:** 2
### Author:  [@rupeshmandal](https://tradingqna.com/u/rupeshmandal)
#### Post date: [May 26, 2021, 6:54am UTC](https://tradingqna.com/t/everything-a-dhfl-fd-and-ncd-holder-needs-to-know/102572/21 "2021-05-26T06:54:27Z")
I had invested 50k in the 3 year NCD [ISIN: INE202B07IY2](https://www1.nseindia.com/live_market/dynaContent/live_watch/get_quote/GetQuote.jsp?symbol=DHFL&series=NQ) which I think on paper would mature on 4/6/2021.
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### Author:  [@Akash\_Shah](https://tradingqna.com/u/Akash_Shah)
#### Post date: [May 26, 2021, 7:00am UTC](https://tradingqna.com/t/everything-a-dhfl-fd-and-ncd-holder-needs-to-know/102572/22 "2021-05-26T07:00:52Z")
If that is the only DHFL NCD you hold, as per approved resolution plan, you should expect around 95%+ of 50K once resolution is completed
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### Author:  [@neha1101](https://tradingqna.com/u/neha1101)
#### Post date: [May 26, 2021, 7:47am UTC](https://tradingqna.com/t/everything-a-dhfl-fd-and-ncd-holder-needs-to-know/102572/23 "2021-05-26T07:47:47Z")
Hi Akash
I have copied your write up to create a new post as I thought whatever you have advised makes common sense.
The topic is “Few things retail investors can do”. If I continue here it would be high jacking the original topic of DHFL
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### Author:  [@rupeshmandal](https://tradingqna.com/u/rupeshmandal)
#### Post date: [June 20, 2021, 3:05pm UTC](https://tradingqna.com/t/everything-a-dhfl-fd-and-ncd-holder-needs-to-know/102572/24 "2021-06-20T15:05:10Z")
[https://www.evotingforibc.com/download-resolution-pdf/9085/12054/Y](https://www.evotingforibc.com/download-resolution-pdf/9085/12054/Y)
[https://www.evotingforibc.com/download-resolution-pdf/9085/12074/Y](https://www.evotingforibc.com/download-resolution-pdf/9085/12074/Y)
@Akash_Shah looks like DHFL is proposing only 40% payback to the Secured NCD holders in the new resolution regardless of the investment amount, compared to 92% previously as mentioned by you for category 1 with investment \< 2 lakh?
> [@Akash\_Shah](#):
>
> 
>
> image772×116 4.71 KB
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### Author:  [@Akash\_Shah](https://tradingqna.com/u/Akash_Shah)
#### Post date: [June 20, 2021, 3:30pm UTC](https://tradingqna.com/t/everything-a-dhfl-fd-and-ncd-holder-needs-to-know/102572/25 "2021-06-20T15:30:25Z")
I couldn’t find any such reference in the proposed amendments.
I think in this amendment they are proposing 40% for unsecured NCD holders (which weren’t getting anything earlier) and for FD holder they will ensure that everyone at least get 40%.
And some extra cash for defence institutes.
Apart from that there is no change in resolution plan. So I assume original full payment to secured NCD upto 2 lakhs stay.
That’s my understanding
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### Author:  [@rupeshmandal](https://tradingqna.com/u/rupeshmandal)
#### Post date: [June 20, 2021, 3:54pm UTC](https://tradingqna.com/t/everything-a-dhfl-fd-and-ncd-holder-needs-to-know/102572/26 "2021-06-20T15:54:22Z")
> [@Akash\_Shah](#):
>
> I couldn’t find any such reference in the proposed amendments.
page 2:
page 9:
please check again. except the defence category, haircut for all despite the investment amount.
On twitter also few are talking about the same.
[https://twitter.com/MoneylifeIndia/status/1406528070362615815](https://twitter.com/MoneylifeIndia/status/1406528070362615815)
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### Author:  [@Akash\_Shah](https://tradingqna.com/u/Akash_Shah)
#### Post date: [June 20, 2021, 4:14pm UTC](https://tradingqna.com/t/everything-a-dhfl-fd-and-ncd-holder-needs-to-know/102572/27 "2021-06-20T16:14:58Z")
Yes, as I said, page 2 refers to payout to unsecured NCD holders.
There is difference between secured and unsecured NCD. Earlier unsecured NCD holders were not getting anything so amendment is proposed to give them 40%
Page 9 makes a generic statement that secured NCDs are already getting 40% which is true for most NCD holders (less than 2 lakh investor are small part of total secured NCD holders)
It also says no further adjustments are being made which means original proposal of payment for secured NCD holder stays (means less than 2 lakh should get full 100%)
People on twitter are full of opinion but lack any subject knowledge, so I generally avoid reading them, but even money life tweet specifically says two new resolution, which to my knowledge refers to 1) unsecured NCD & 2) defence
So I don’t see any reason for original plan changing. And secured NCD less than 2 lakh should be getting 100%
That’s how I am reading it, but let’s wait for some more clarity
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### Author:  [@rupeshmandal](https://tradingqna.com/u/rupeshmandal)
#### Post date: [June 20, 2021, 4:18pm UTC](https://tradingqna.com/t/everything-a-dhfl-fd-and-ncd-holder-needs-to-know/102572/28 "2021-06-20T16:18:57Z")
Okay, keeping fingers crossed.
One more query to you, and @Quicko:
Just in case we have to take a haircut, it’s a long-term capital loss in a debt instrument.
Do you know how is taxation, loss carry forward and set-off work for this?
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### Author:  [@rupeshmandal](https://tradingqna.com/u/rupeshmandal)
#### Post date: [June 21, 2021, 10:53am UTC](https://tradingqna.com/t/everything-a-dhfl-fd-and-ncd-holder-needs-to-know/102572/29 "2021-06-21T10:53:23Z")
@Akash_Shah Received an update.
[https://pr9.saymails.com/ctltrustee/preview.php?nc=vm&m=90&u=UwMFDAMGBA0=](https://pr9.saymails.com/ctltrustee/preview.php?nc=vm&m=90&u=UwMFDAMGBA0=)
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### Author:  [@Akash\_Shah](https://tradingqna.com/u/Akash_Shah)
#### Post date: [June 21, 2021, 11:08am UTC](https://tradingqna.com/t/everything-a-dhfl-fd-and-ncd-holder-needs-to-know/102572/30 "2021-06-21T11:08:26Z")
Yup, I got that too from the trustees.
Matches with what I understood yesterday. 100% payout for less than 2 lakh secured NCD holders. No change in it.
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### Author:  [@rupeshmandal](https://tradingqna.com/u/rupeshmandal)
#### Post date: [June 23, 2021, 8:30am UTC](https://tradingqna.com/t/everything-a-dhfl-fd-and-ncd-holder-needs-to-know/102572/31 "2021-06-23T08:30:42Z")
> **[DHFL Creditors Vote Against Higher Payout to FD holders, Unsecured NCD Holders](https://www.moneylife.in/article/dhfl-creditors-vote-against-higher-payout-to-fd-holders-unsecured-ncd-holders/64310.html)**
>
> The committee of creditors (CoC) of the beleaguered Dewan Housing Finance Corporation Ltd (DHFL) has voted against a proposal which sought to increase payouts to fixed depositors and non-convertible debenture(NCD) holders in the company.
- 89.19% of the financial creditors voted against the proposal.
- The large banks majorly have voted against the new proposal.
- At least 66% of the financial creditors must vote in favour of a proposal for it to be passed.
- Surprisingly, the fixed deposit holders and unsecured NCD holders have also voted against the proposal which would have given them more money.
Now what @Akash_Shah
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### Author:  [@Akash\_Shah](https://tradingqna.com/u/Akash_Shah)
#### Post date: [June 23, 2021, 8:51am UTC](https://tradingqna.com/t/everything-a-dhfl-fd-and-ncd-holder-needs-to-know/102572/32 "2021-06-23T08:51:49Z")
Yup, this was known. In last COC meeting itself all banks had gone on record and indicated that they are against changing anything this late.
They took a vote because nclt “suggested” them to review it. Now this proposals are voted down, so original resolution plan will stand, Piramal will take over DHFL and they should start paying in next quarter.
I think this is the logical end to all uncertainty. Unless some court puts a stay on it again
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### Author:  [@rupeshmandal](https://tradingqna.com/u/rupeshmandal)
#### Post date: [June 23, 2021, 8:56am UTC](https://tradingqna.com/t/everything-a-dhfl-fd-and-ncd-holder-needs-to-know/102572/33 "2021-06-23T08:56:02Z")
Yes, too many twists and turns so far.
But I also think this would make the retail investors little cautious about NCDs from now on, especially the so called ‘secured’ part of it. But I didn’t find any mention of it in the NCLT judgement. Because all eyes were on the judgement as it makes it a case study for the future.
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### Author:  [@Akash\_Shah](https://tradingqna.com/u/Akash_Shah)
#### Post date: [June 23, 2021, 9:02am UTC](https://tradingqna.com/t/everything-a-dhfl-fd-and-ncd-holder-needs-to-know/102572/34 "2021-06-23T09:02:28Z")
On the contrary, retail investor should actually consider investing in secured NCD, This is live example where both FD holders and unsecured NCD holders are loosing money, but at least retail secured NCD holders are getting capital back
> [@rupeshmandal](#):
>
> But I didn’t find any mention of it in the NCLT judgement. Because all eyes were on the judgement as it makes it a case study for the future.
NCLT judgement came in on 7th or 8th June approving the plan with some suggestions (like if possible look out for small FD holders and Army trusts and so on). COC voted on those suggestions and rejected it yesterday.
So I don;t think anything is left for NCLT now.
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### Author:  [@rupeshmandal](https://tradingqna.com/u/rupeshmandal)
#### Post date: [June 23, 2021, 9:28am UTC](https://tradingqna.com/t/everything-a-dhfl-fd-and-ncd-holder-needs-to-know/102572/35 "2021-06-23T09:28:31Z")
Going back to the previous proposal means -
The defence group investors (which was supposed to get 100% as per the new proposal) and the retail investors having unsecured NCD and FDs (which were supposed to get around 40% against earlier 5% recovery) would now get lesser payouts?
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### Author:  [@Stonecold](https://tradingqna.com/u/Stonecold)
#### Post date: [June 23, 2021, 9:37am UTC](https://tradingqna.com/t/everything-a-dhfl-fd-and-ncd-holder-needs-to-know/102572/36 "2021-06-23T09:37:29Z")
> [@Akash\_Shah](#):
>
> This is live example where both FD holders and unsecured NCD holders are loosing money, but at least retail secured NCD holders are getting capital back
Sir what if someone has invested more than 2 lakh in ‘Secured NCD’ of DHFL ? Is he also getting something back ?
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### Author:  [@Akash\_Shah](https://tradingqna.com/u/Akash_Shah)
#### Post date: [June 23, 2021, 11:27am UTC](https://tradingqna.com/t/everything-a-dhfl-fd-and-ncd-holder-needs-to-know/102572/37 "2021-06-23T11:27:58Z")
Yes,
FD investor will get around 27% recovery regardless of investor type i.e. retail, institution, army etc.
Unsecured NCD holder should get 5% regardless of investor type
NCLT wanted COC to show some mercy to specific investors, but COC do not want to show any mercy 😛
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### Author:  [@Akash\_Shah](https://tradingqna.com/u/Akash_Shah)
#### Post date: [June 23, 2021, 11:30am UTC](https://tradingqna.com/t/everything-a-dhfl-fd-and-ncd-holder-needs-to-know/102572/38 "2021-06-23T11:30:11Z")
For investor holding more than 2 lakh of secured NCD, recovery is around 40%. So should get 40% of money back.
If you are holding more than 10 lakh, then part of it will be cash and part of it would be instrument from Piramal.
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### Author:  [@Stonecold](https://tradingqna.com/u/Stonecold)
#### Post date: [June 23, 2021, 11:54am UTC](https://tradingqna.com/t/everything-a-dhfl-fd-and-ncd-holder-needs-to-know/102572/39 "2021-06-23T11:54:02Z")
> [@Akash\_Shah](#):
>
> People on twitter are full of opinion but lack any subject knowledge, so I generally avoid reading them
Very well said. It is just noise there. Even trending topics have no meaning and forgotten within 24 hours.
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### Author:  [@kc1](https://tradingqna.com/u/kc1)
#### Post date: [June 24, 2021, 1:13am UTC](https://tradingqna.com/t/everything-a-dhfl-fd-and-ncd-holder-needs-to-know/102572/40 "2021-06-24T01:13:20Z")
what is the recovery rate for secured ncd investors ( less than 2 lakh ) who did not participate in the voting process?
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