CDSL freezes holdings of DHFL promoters
New Delhi: Leading depository CDSL has frozen shareholding of the promoters of debt-ridden mortgage lender Dewan Housing Finance Corporation (DHFL) due to delay in announcement of the company’s financial earnings, sources said on Monday.
The decision has been taken after the company failed to announce its first quarterly results, they said. However, sources close to DHFL said the company results are expected to be announced in next few days, for which the board meeting is expected to be called for.
In a filing to stock exchanges, DHFL said the meeting of its board of directors is scheduled to be held on October 17, 2019, to consider and approve the un-audited financial results for the first quarter ended June 30. The delay in submission of the financial results by the company is on “account of resignation of the erstwhile statutory auditors and reasonable time required by the new statutory auditors to review the financial results”.
The company has approved the appointment of K K Mankeshwar & Co, Chartered Accountants as the statutory auditors of the company consequent upon resignation of the erstwhile statutory auditors.
DHFL, which has been severely impacted by the NBFC crisis that unfolded late last year following the IL&FS bankruptcy, has defaulted on multiple commitments.
The Wadhawan family, which owns a little over 39% in the DHFL, has been looking at various ways of coming out of the stress. These include selling stakes in group entities, including in the flagship to the extent of giving up half of their stake.
Sources on Monday said CDSL, which allows investors to deposit securities by opening an account in electronic form (dematerialised), has frozen the entire shareholding of DHFL’s promoters after the company delayed announcement of financial results.