I think it would be better for investors to take the loss, get rid of the uncertainty associated with debt recovery and invest elsewhere. The fund houses are expected to do the due diligence, but as a debt fund investor, the risk also belongs to me. Any fixed maturity instrument that does not permit liquidity at the point that it was promised could, therefore, create challenges for investors. So it is critical that, irrespective of the underlying performance, investors are able to choose whether they wish to stay or not. Investors who do not need liquidity could decide on the basis of the risk in the underlying security.

Source: Mint April 21, 2019 17:48 UTC