SEBI fines DHFL for disclosure violations
ECONOMY & POLICY

SEBI fines DHFL for disclosure violations

The Securities and Exchange Board of India (Sebi) has imposed fines totalling Rs 60 million on 15 entities, including Kapil Wadhawan and Dheeraj Wadhawan, former promoters of Deewan Housing Finance Corp Ltd (DHFL), for breaching disclosure norms. These penalties must be paid jointly and severally within 45 days, according to Sebi's order.

In its 82-page ruling, Sebi determined that the promoters, including Kapil Wadhawan and Dheeraj Wadhawan, concealed the involvement of three companies—Hemisphere Infrastructure India, Galaxy Infraprojects and Developers, and Silicon First Realtors—directly or indirectly held by DHFL's promoters. These entities were incorrectly categorized as part of the public shareholders instead of being acknowledged as part of DHFL's promoter and promoter group.

Sebi observed that entities categorised as promoters, promoter groups, and Persons Acting in Concert (PACs) with control over DHFL were obligated to disclose the number and percentage of shares or voting rights they held as of March 31 for the years 2008, 2009, 2010, and 2011. They failed to fulfill these disclosure requirements, thereby violating the Substantial Acquisition of Shares and Takeover (SAST) rules.

Sebi initiated the investigation into DHFL's scrip in response to a complaint received in January 2019, aiming to determine potential violations of SAST rules between July 2007 and December 2018. Furthermore, Sebi identified instances where some of these entities failed to make public announcements of open offers on 14 occasions when the obligation to do so was triggered between 2007 and 2016.

In addition to Kapil and Dheeraj, Sebi imposed penalties on several others, including Rakesh Kumar Wadhawan, Sarang Wadhawan, Aruna Wadhawan, Malti Wadhawan, Anu S Wadhawan, and Pooja D Wadhawan.

The Securities and Exchange Board of India (Sebi) has imposed fines totalling Rs 60 million on 15 entities, including Kapil Wadhawan and Dheeraj Wadhawan, former promoters of Deewan Housing Finance Corp Ltd (DHFL), for breaching disclosure norms. These penalties must be paid jointly and severally within 45 days, according to Sebi's order.In its 82-page ruling, Sebi determined that the promoters, including Kapil Wadhawan and Dheeraj Wadhawan, concealed the involvement of three companies—Hemisphere Infrastructure India, Galaxy Infraprojects and Developers, and Silicon First Realtors—directly or indirectly held by DHFL's promoters. These entities were incorrectly categorized as part of the public shareholders instead of being acknowledged as part of DHFL's promoter and promoter group.Sebi observed that entities categorised as promoters, promoter groups, and Persons Acting in Concert (PACs) with control over DHFL were obligated to disclose the number and percentage of shares or voting rights they held as of March 31 for the years 2008, 2009, 2010, and 2011. They failed to fulfill these disclosure requirements, thereby violating the Substantial Acquisition of Shares and Takeover (SAST) rules.Sebi initiated the investigation into DHFL's scrip in response to a complaint received in January 2019, aiming to determine potential violations of SAST rules between July 2007 and December 2018. Furthermore, Sebi identified instances where some of these entities failed to make public announcements of open offers on 14 occasions when the obligation to do so was triggered between 2007 and 2016.In addition to Kapil and Dheeraj, Sebi imposed penalties on several others, including Rakesh Kumar Wadhawan, Sarang Wadhawan, Aruna Wadhawan, Malti Wadhawan, Anu S Wadhawan, and Pooja D Wadhawan.

Next Story
Infrastructure Urban

Aadhaar Authentications Cross 27 Billion in FY25

Aadhaar authentication transactions surged past 27.07 billion in FY 2024–25, including 2.47 billion in March alone, reflecting its growing adoption across sectors such as banking, finance, telecom, and public service delivery. Since its inception, the cumulative number of Aadhaar authentication transactions has exceeded 148 billion.The Unique Identification Authority of India’s (UIDAI) AI/ML-based face authentication technology is also witnessing a sharp rise in usage. In March 2025 alone, over 150 million face authentication transactions were recorded. This biometric modality is now used ..

Next Story
Infrastructure Urban

IEPFA Holds Preparatory Meet for 'Niveshak Shivir' Initiative

The Investor Education and Protection Fund Authority (IEPFA), under the Ministry of Corporate Affairs, Government of India, hosted a preparatory meeting on April 28, 2025, with Nodal Officers from stakeholder companies via video conference. The session, chaired by IEPFA CEO Smt. Anita Shah Akella, focused on finalising operational plans for the upcoming ""Niveshak Shivir"" initiative—a joint effort between IEPFA and the Securities and Exchange Board of India (SEBI).""Niveshak Shivir"" aims to improve investor services and streamline the claims process by reaching out to cities with a high nu..

Next Story
Infrastructure Urban

India, France Sign Deal for 26 Rafale-Marine Jets for Navy

India and France have signed an Inter-Governmental Agreement (IGA) for the acquisition of 26 Rafale-Marine aircraft for the Indian Navy, comprising 22 single-seater and four twin-seater jets. The deal also includes training systems, simulators, associated equipment, weapons, and performance-based logistics, along with additional equipment for the Indian Air Force’s existing Rafale fleet.The IGA was signed by India’s Defence Minister Rajnath Singh and French Minister of Armed Forces Sébastien Lecornu. The agreement, along with supply protocols for aircraft and weapons, was exchanged in the..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?