SES opposes DHFL insurance hive-off plan

Cites incomplete disclosures; firm says deal beneficial to shareholders

Governance advisory Stakeholders’ Empowerment Services (SES) has advised shareholders of Dewan Housing Finance (DHFL) to vote against its management’s seeking approval for a related party transaction. It says the disclosures are not enough. The company says the deal has all the necessary approvals.

In a postal ballot that closes on Friday, DHFL has moved a resolution that will enable it to transfer its 50 per cent stake in joint venture DLF Pramerica Life Insurance to a wholly owned subsidiary called DHFL Investments.

DHFL Investments will use funds received from a promoter-owned entity called Wadhawan Global Capital (WGC) to fund this transaction. DHFL