DHFL Says Its Board Will Meet On Oct. 17 To Consider Q1 Results
CDSL has frozen shareholding of promoters of debt-ridden DHFL because of the delay in announcement of the company’s Q1 results.
Central Depository Services (India) Ltd. has frozen shareholding of promoters of debt-ridden Dewan Housing Finance Corporation Ltd. because of 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, in a filing to the stock exchanges, DHFL said its board meeting is scheduled for Oct. 17 to consider and approve the unaudited financial results for the June quarter.
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 crisis-hit housing financier said in the exchange filing.
The company has approved the appointment of KK Mankeshwar & Co. Chartered Accountants as the statutory auditors of the company.
DHFL, which has been severely impacted by the NBFC crisis that unfolded late last year following defaults at IL&FS Group, has defaulted on multiple commitments.
"Any action taken by the stock exchanges or depositories as a result of delay in submission of the above financial results by the company is purely procedural in nature and does not materially impact the company or the promoters," DHFL said.
Query sent to CDSL about the freezing of promoters' holding remained unanswered.
Under the Securities and Exchange Board of India’s listing regulations, a company is required to submit financial results on a quarterly basis. A depository can freeze the entire promoter shareholding of a firm in case of non-compliance with listing rules.
According to market experts, if any listed entity's results is delayed, the exchanges hold “on-account” the shareholding of the promoters of the said entity. Hence, this matter is procedural and no undue speculation is needed, they added.
In late September, DHFL submitted a draft debt resolution plan, subject to approval of investors and bankers. Acceptance of the plan is crucial for new funds to start flowing into the company. DHFL has sold its strategic investments, including those in Avanse, Aadhar Housing, DHFL Pramerica AMC, to generate capital.
On Monday, DHFL shares fell 7.52 percent to Rs 28.90 apiece on the BSE while the benchmark Sensex shed 0.38 percent to end the day at 37,531.98 points.