SEBI levies Rs.6 crores fine on DHFL’s former promoters for disclosure lapses

SEBI levies Rs.6 crores fine on DHFL’s former promoters for disclosure lapses

The penalty is to be paid jointly and severally within 45 days

The Securities and Exchange Board of India (SEBI) has imposed a fine of Rs.6 crores on 15 entities, including Kapil Wadhawan and Dheeraj Wadhawan, for flouting disclosure norms in the case of Deewan Housing Finance Corp Ltd (DHFL). The Wadhawans are the former promoters of DHFL.

In its 82-page order, SEBI stated that the promoters of DHFL suppressed the names of three companies – Hemisphere Infrastructure India, Galaxy Infraprojects and Developers, and Silicon First Realtors, directly or indirectly held by DHFL. The companies were shown as part of public shareholders instead of being part of the promoter and DHFL, the promoter group.

The capital market regulator noted that the entities being promoter or promoter group and PACs (Persons Acting in Concert) having control over DHFL were under an obligation to make disclosures concerning the number and percentage of shares or voting rights held by them as of 31 March for the years ending 2008, 2009, 2010, and 2011.

However, by failing to do so, they violated the provisions of Substantial Acquisition of Shares and Takeovers Regulations, 2011.

Based on a complaint received by it, SEBI had investigated the scrip of DHFL to ascertain whether there was any violation of the SAST provisions from July 2007 to December 2018.

The markets regulator discovered that some of these entities had failed to make a public announcement of an open offer on 14 occasions when the obligation to make an open offer was triggered from 2007 to 2016.

Others penalized by SEBI include Rakesh Kumar Wadhawan, Sarang Wadhawan, Aruna Wadhawan, Malti Wadhawan, Anu S Wadhawan, and Pooja D Wadhawan.

Penalties have also been taxed on Wadhawan Holding, Wadhawan Consolidated Holding, Wadhawan Retail Venture, Wadhawan Global Capital Ltd, Hemisphere Infrastructure India, Galaxy Infra Projects and Developers, and Silicon First Realtors.

Read More