DHFL's sale poses legal hurdle for Oaktree due to insurance JV stake

Insurance sale before DHFL sale would have eliminated regulatory uncertainty, say lawyers

The insurance joint venture (JV) of DHFL, in which a foreign entity holds 49 per cent, is turning out to be a big legal hurdle for Oaktree as well as lenders, as

the acquisition by the US-based asset management firm would breach the foreign direct investment (FDI) ceiling for the insurance sector.

Before Oaktree's offer is put to vote, the administrator of DHFL has to confirm to the committee of creditors (CoC) that every resolution plan that gets submitted for voting is implementable and not in contravention of any provision of law and the Insolvency and Bankruptcy Code (IBC). "As things stand