Sebi letter ends MFs' hopes of joining DHFL resolution process

Regulator makes side-pocket mandatory for resolution process; over 100 exposed schemes fail to make the cut

The mutual fund (MF) industry's hopes of becoming part of the resolution process of Dewan Housing Finance Corporation (DHFL) under the inter-creditor agreement (ICA) framework got quashed on Thursday with the Securities and Exchange Board of India (Sebi) clearly stating that only those MF schemes that have already side-pocketed the affected debt exposure can participate in any ICA process.

Sebi was replying to a representation made by the industry body Association of Mutual Funds in India (Amfi), which had asked the regulator if the action of joining DHFL-ICA can itself be sufficient condition to side-pocket exposure to the troubled housing