Bankrupt DHFL's promoters barred from securities market

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SME Times News Bureau | 23 Sep, 2020
The Securities and Exchange Board of India (SEBI) has barred Dewan Housing Finance Corp Ltd's (DHFL) promoters, the Wadhawans, from accessing the securities market and dealing in securities, for norm violations and fraudulent transactions.

The regulator has also restrained them from associating, as directors or promoters, with any listed public company and any public company which intends to raise money from the public or any intermediary registered with it.

The promoters are Kapil Wadhawan, Dheeraj Wadhawan, Rakesh Kumar Wadhawan, Sarang Wadhawan, Aruna Wadhawan, Malti Wadhawan, Anu S. Wadhawan, Pooja D. Wadhawan, Wadhawan Holding Pvt Ltd, Wadhawan Consolidated Holding Pvt Ltd, Wadhawan Retail Venture Pvt Ltd and Wadhawan Global Capital Ltd (formerly known as Wadhawan Housing Pvt Ltd).

SEBI had issued show-cause notices to all the promoters as to why suitable prohibitions under Sections 11(4) and 11B of the SEBI Act including the directions for restraining or prohibiting them from accessing the securities market and buying should not be imposed against them.

The Wadhawans need to file their respective replies with SEBI within 21 days from the date of receipt of the interim order-cum-show cause notice.

As DHFL is currently under insolvency, the SEBI order said: "This order is without prejudice to Direction(s) or Order that may be passed by the NCLT during the corporate insolvency resolution process of the Company under the Insolvency and Bankruptcy Code, 2016."