IL and FS redux; Zee group MF debt exposure at Rs.7,000 crore

Mumbai, Jan 25 (IANS) In an IL and FS redux, Zee group companies' exposure to the mutual fund debt and non banking financial companies industry is estimated at Rs.12,000 crore--Rs. 7,000 crore to MF debt and Rs. 5,000 crore to NBFCs.

The MF debt exposure is reportedly entirely at Zee promoter level. Exposure to Birla MF was Rs. 2,900 crore while it was Rs. 1,000 crore in the case of HDFC. The exposure to ICICI Pru was Rs.750 crore. On the NBFC front, it is believed that HDFC Ltd and L and T Finance may be impacted.

Since it is a weekend, the market can expect a hammering of Zee Group entity shares on Monday because MF debt exposure is not secured, say market analysts.

The Zee Group promoter is Subhash Chandra, who is a member of the Rajya Sabha from Haryana, and has a strong affiliation to the RSS and the BJP. Coming as it does on the back of the still-to-be cauterised IL and FS, it will send shock waves through India's financial system.

(This story has not been edited by Social News XYZ staff and is auto-generated from a syndicated feed.)

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