DHFL promoters' holding frozen for delay in first quarter results

Central Depository Services (CDSL) has frozen debt-ridden Dewan Housing Finance Corporation’s (DHFL’s) promoter shareholding since the company has not filed results for the first quarter.

However, sources close to DHFL said the company is going to declare its results in few days and is arranging a board meeting for the purpose.

According to sources, the delay in the results is because the auditor has resigned. “Since DHFL’s auditors had resigned and a new auditor had been appointed at the AGM held on September 28, the company’s first quarter results had been delayed,” said one of the sources.

Meanwhile, DHFL informed the BSE that the meeting of the board of directors is scheduled to be held on Thursday (October 17). The board will consider and approve the unaudited financial results for the first quarter ended June 30.

CDSL allows investors to deposit securities by opening an account in electronic form (dematerialised). And, according to the listing obligations and disclosure requirements (LODR) regulation, a company is required to submit financial results on a quarterly basis. 

The depository has the right to freeze the entire holding of a promoter if the company fails to announce its financial results quarterly.

Market experts believe that it is technical issue. “Hence, this matter is procedural and no undue speculation is needed,” said a market expert.

DHFL defaulted on multiple commitments after it was in trouble due to the NBFC crisis which started after the fallout of IL&FS.

The group promoters, who own almost 39 stake, have tried various methods to dispose of the stress and also submitted a resolution plan to the lenders which is subject to approval.