Star Housing Finance Limited has announced that it has placed the appointment of external auditors on hold for conducting an audit related to the National Housing Bank (NHB) Snap Audit Report. The decision was communicated to BSE Limited through a regulatory filing under Regulation 30 of SEBI LODR Regulations on 1st May 2026.

External Audit Appointment Update

The company had previously shortlisted M/s. Parikh & Associates, Chartered Accountants, as independent auditors to conduct a comprehensive external audit in respect of the Snap Audit Report issued by the National Housing Bank. However, the appointment has been kept on hold as per the instructions of the Board of Directors and Management.

Previous Communications

This update follows the company's earlier intimations under Regulation 30 of SEBI LODR regulations dated 3rd April 2026 and 14th April 2026. The company has indicated that further developments regarding the external audit appointment will be updated in due course.

Company's Clarification

Star Housing Finance Limited has emphasized that the matter under review remains at the stage of suspicion. The company specifically clarified that the existence of such irregularities has not yet been substantiated, maintaining transparency about the current status of the investigation.

Regulatory Compliance

The communication was signed by Nachiketa Purohit, Company Secretary & Compliance Officer (Mem. No. 25011), and was digitally signed on 1st May 2026. The filing ensures compliance with the disclosure requirements under SEBI LODR Regulations, keeping stakeholders informed about material developments affecting the company.

Star Housing Finance Limited faces a critical juncture as it schedules a debenture holders meeting following a payment default on its Non-Convertible Debentures. The company has been unable to meet payment obligations on NCDs worth ₹20 crores, prompting formal proceedings by the debenture trustee.

Payment Default and Extension Request

The payment of interest and outstanding principal on the debentures was due on April 25, 2026, following a Put Option notice issued on March 11, 2026, by Vardhman Trusteeship Private Limited. The actual due date fell on April 27, 2026, as April 25 was a holiday.

Star Housing Finance has requested the debenture trustee to grant an extension of fourteen working days to complete the payment. The company cited ongoing efforts to infuse liquidity through the onboarding of a prospective new investor as the reason for the extension request.

Debenture Holders Meeting Details

Vardhman Trusteeship Private Limited has convened a meeting of debenture holders scheduled for Friday, May 22, 2026, at 4:00 p.m. through video conferencing. The meeting will address several critical matters:

• Negative consent for proceeding with enforcement of security
• Positive consent for signing the Inter Creditor Agreement if approached by other lenders
• Other actions as decided by debenture holders
• Disclosure regarding further action if requisite consents are not received

Consent Requirements and Enforcement

The enforcement of security or filing of recovery suit requires specific consent thresholds from debenture holders. The debenture trustee has outlined clear requirements for any enforcement action.

The debentures in question are rated, listed, secured, redeemable Non-Convertible Debentures issued on a private placement basis under the Debenture Trust Deed dated October 18, 2023.

Current Status and Next Steps

Vardhman Trusteeship Private Limited has been following up with Star Housing Finance for payment confirmation but has not received any confirmation from the issuer. The trustee has also approached Bigshare Services Private Limited, acting as the Registrar and Transfer Agent, and State Bank of India for payment confirmation, with information still awaited.

The notice specifies that if the default is cured between the date of notice and the proposed meeting date, the meeting will stand cancelled. The meeting link will be provided separately and hosted on the trustee's website at vardhmantrustee.com, with debenture holders advised to visit regularly for updates.