The capital market regulator Sebi fined 15 entities, including Kapil Wadhawan and Dheeraj Wadhawan, a total of Rs 6 crore on Wednesday for violating disclosure laws in the case of Deewan Housing Finance Corp Ltd (DHFL).
Wadhawans are the former promoters of DHFL.
The Securities and Exchange Board of India said in an order that the fines need to be paid jointly and severally within 45 days.
In its 82-page order, Sebi said the promoters, including Kapil Wadhawan and Dheeraj Wadhawan, suppressed the names of three companies — Hemisphere Infrastructure India, Galaxy Infraprojects and Developers, and Silicon First Realtors — which were directly or indirectly being held by the promoters of DHFL.
These three companies were shown as public shareholders rather than as members of DHFL’s promoters and promoter groups.
Sebi noted that the entities being promoter or promoter group and PACs (Persons Acting in Concert) having control over DHFL were under an obligation to make necessary disclosures concerning the number and percentage of shares or voting rights held by them as of March 31 for the years ended 2008, 2009, 2010, and 2011 to DHFL.
They failed to make necessary disclosures and thereby violated provisions of Substantial Acquisition of Shares and Takeover (SAST) rules, it said.
The Securities and Exchange Board of India (Sebi), based on a complaint received by it in January 2029, had investigated the scrip of DHFL to ascertain whether there has been any violation of the provisions of SAST rules for the period from July 2007 to December 2018.
Additionally, Sebi discovered that some of these businesses had missed 14 opportunities between 2007 and 2016 to publicly disclose an open offer when the requirement to do so was triggered.
Apart from Kapil and Dheeraj, others penalised by Sebi include Rakesh Kumar Wadhawan, Sarang Wadhawan, Aruna Wadhawan, Malti Wadhawan, Anu S Wadhawan and Pooja D Wadhawan.
Fines have also been imposed on Wadhawan Holding, Wadhawan Consolidated Holding, Wadhawan Retail Venture, Wadhawan Global Capital Ltd, Hemisphere Infrastructure India, Galaxy Infraprojects and Developers and Silicon First Realtors.