Sunday, July 14, 2024

SEBI Issues Demand Notices to Former DHFL Promoters for Violating Disclosure Rules; Warns of Arrest and Asset Attachment

India’s capital markets regulator, the Securities and Exchange Board of India (SEBI), has issued demand notices to Dheeraj Wadhawan and Kapil Wadhawan, former promoters of Dewan Housing Finance Corp Ltd (DHFL), directing them to pay Rs 10.6 lakh each. The notices serve as a consequence of the Wadhawans’ non-compliance with a fine imposed by SEBI in July 2023, amounting to Rs 10 lakh each, for breaching disclosure norms.

Kapil Wadhawan, the former Chairman and MD of DHFL (now Piramal Finance), and Dheeraj Wadhawan, his brother and former non-executive director at the company, were both members of DHFL’s board. SEBI’s action stems from an investigation into the transfer of shares from DHFL to its wholly-owned subsidiary DHFL Investments, along with other related transactions during the period of February-March 2017.

SEBI’s findings indicate that the Wadhawan brothers were responsible for inadequate information provided in the postal ballot notice issued by DHFL. The demand notices issued on Thursday stipulate a payment of Rs 10.6 lakh each within 15 days, inclusive of interest and recovery costs. SEBI has cautioned that failure to comply with this directive may result in the attachment and sale of movable and immovable properties, along with potential bank account attachments and arrest for the concerned individuals.

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