CDSL freezes hold­ings of DHFL pro­mot­ers

The Times of India (New Delhi edition) - - Times Global -

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.

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