Capital market regulator SEBI on Wednesday imposed penalties totalling ₹6 crore on 15 entities, including Kapil Wadhawan and Dheeraj Wadhawan, for flouting disclosure norms in the case of Dewan Housing Finance Corp Ltd (DHFL).
Wadhawans are the former promoters of DHFL.
The fines need to be paid jointly and severally within 45 days, the Securities and Exchange Board of India (SEBI) said in an order.
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 part of public shareholders instead of being part of the promoter and promoter group of DHFL.
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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 2019, 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.
Also, SEBI found that some of these entities had failed to make a public announcement of an open offer on 14 occasions when the obligation to make an open offer was triggered from 2007 to 2016.
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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.