The Securities and Exchange Board of India (Sebi) has slapped a Rs 6-crore penalty on erstwhile promoters of DHFL (Dewan Housing Finance) for violating disclosure norms.In an order issued on Wednesday, the capital markets regulator named former promoters of DHFL — Kapil Wadhawan, Dheeraj Wadhawan, Rakesh Wadhawan and Sarang Wadhawan, among others — for violating norms related to disclosures.
Sebi has granted the noticees 45 days to pay the fine.
Acting on a complaint received in January 2019, the regulator was probing allegations that the Wadhawans had misled shareholders by claiming that the promoter holding in DHFL was 39.23%.
Besides, it was alleged that the promoters had suppressed the names of three companies — Hemisphere Infrastructure, Galaxy Infraprojects and Developers and Silicon First Realtors — which held around 10% in DHFL, while in reality they were directly/indirectly held by DHFL promoters. These entities were classified as “public shareholders” instead of “promoter and promoter group”.
Failure to make these necessary disclosures means they were in violation of provisions of the ‘Substantial Acquisition of Shares and Takeover’ or SAST rules, said the order.
According to the regulator, these entities, being the promoter or promoter group and ‘Persons Acting in Concert’ having control over the firm, were bound by regulations to make the requisite disclosures regarding the level of shareholding as well as voting rights held by them as of March 31 from 2008 to 2011.
The regulator also observed that the promoter group and the entities acting in concert failed to make a public announcement of an open offer on multiple occasions when the obligation was triggered.
Besides the Wadhawans, the penalty has been imposed on Wadhawan Holding, Wadhawan Consolidated Holding, Wadhawan Retail Venture, Wadhawan Global Capital, Hemisphere Infrastructure India, Galaxy Infraprojects and Developers and Silicon First Realtors.