DHFL shares fall nearly 5 pc as RBI starts resolution process

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

Shares of the troubled firm opened at Rs 19.80 and settled at Rs 19.70, down 4.83 per cent from the previous close on the BSE. On the NSE, the stock lost 4.82 per cent to close at Rs 19.75.

Over 17 lakh shares of DHFL were traded on the NSE, while the BSE saw an exchange of 4.51 lakh shares. The Reserve Bank on Friday sent the troubled mortgage lender 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," RBI had said in a statement.