SEBI lifts securities market ban on eight former promoter entities of DHFL, Real Estate News, ET Real Estate

New Delhi: SEBI The securities market ban imposed on eight former promoter entities was lifted on Friday. Dewan Housing Finance Ltd. (DHFL) in a matter relating to an alleged fraudulent financial transaction.

Also, the regulator said that the investigation of the matter has been completed and thereafter quasi-judicial proceedings have been initiated against it. Kapil Wadhawan, Dheeraj WadhawanRakesh Kumar Wadhawan and Sarang Wadhawan who were the other four former promoters of DHFL (now known as Piramal Finance).

The eight erstwhile promoter entities are Aruna Wadhawan, Malti Wadhawan, Anu Wadhawan, Pooja Wadhawan, Wadhawan Holdings Private Limited, Wadhawan Consolidated Holdings Private Limited, Wadhavan Retail Venture Private Limited and Wadhavan Global Capital Limited (formerly known as Wadhavan Housing Private Limited). The entities are collectively referred to as the noticeees.

SEBI whole-time member Ashwani Bhatia in his fresh order said, “I note that the investigation of the matter is now complete and quasi-judicial proceedings are being initiated against Kapil Wadhawan, Dheeraj Wadhawan, Rakesh Kumar Wadhawan and Sarang Wadhawan.” However, it is noted that the investigation has not conclusively established the role of other notice recipients.”

“I direct that the ban imposed on the noticee by the interim order read with the confirmatory order shall be lifted with immediate effect,” Bhatia said.

In an interim order passed in September 2020, SEBI had banned Kapil Wadhawan, Dheeraj Wadhawan, Rakesh Kumar Wadhawan, Sarang Wadhawan and others from the securities markets. It also barred him from associating himself as a director or promoter of any listed public company or associating himself with any intermediary registered with the regulator.

The order was passed after a transaction auditor raised serious concerns over the authenticity and reliability of DHFL’s financial statements for the period FY 2007-2019. The firm had raised Rs 24,000 crore through public issue of debt securities during this period.

SEBI had noted that DHFL had entered into certain fraudulent transactions which were shown as genuine transactions in its published financial statements as well as in corporate announcements disseminated in the public domain.

Subsequently, the regulator passed a confirmatory order in October 2021, confirming the directions passed against twelve promoters of DHFL, including Kapil, Dheeraj, Rakesh Kumar, Sarang and others, barring them from accessing securities markets Was.