SEBI restrains 12 DHFL promoters from accessing securities for violating norms

Debt-ridden mortgage lender Dewan Housing Finance Corporation Ltd (DHFL) said on Wednesday that the Securities and Exchange Board of India (SEBI) has restrained 12 of its promoters from accessing securities market for violating market norms.

They have also been restrained from associating themselves as directors or promoters of any listed public company or associating with any intermediary registered with SEBI.

The market regulator said the violations are very grave in nature and the amount involved in the fraudulent transactions is of a very high magnitude.

The promoters are Kapil Wadhawan, Dheeraj Wadhawan, Rakesh Kumar Wadhawan, Sarang Wadhawan, Aruna Wadhawan, Malti Wadhawan, Anu S Wadhawan, Pooja D Wadhawan, Wadhawan Holding, Wadhawan Consolidated Holding, Wadhawan Retail Venture and Wadhawan Global Capital.

Sebi noted that the initial report of the transaction auditor raised serious concerns over authenticity and reliability of DHFL's financial statements for the period between the financial year 2007-2019.

The firm raised Rs 24,000 crore through public issue of debt securities during this period.

SEBI said DHFL has entered into certain fraudulent transactions which were shown as bonafide transactions in its published financial statements as well as corporate announcements disseminated in the public domain.

"By indulging in such fraudulent transactions, the promoters of the company have prima-facie defrauded the investors in securities of DHFL," said SEBI.

The entities can file their replies with the regulator within 21 days from the date of receipt of the interim order-cum-show cause notice, failing which the order of restraint from the securities market will stand confirmed against them automatically without any further orders, it added.

( With inputs from ANI )