SEBI wraps Dhenu Buildcon on roundtripping charges
The Securities and Exchange Board of India (SEBI) has penalized Dhenu Buildcon Infra Ltd. for alleged financial round-tripping. The regulator barred the company and its key promoters from capital markets, citing the creation of fake unsecured loans and non-existent entities to manipulate equity shares.
Why it matters
This enforcement action highlights regulatory efforts to curb corporate fraud and market manipulation within the Indian financial sector.
Securities and Exchange Board of India (SEBI) pulled-up Dhebu Buildcon Infra Ltd., a former NBFC firm, for alleged round tripping of funds, and partially converting the unsecured loan into equity share through preferential allotment.
“The transactions under examination constituted a coordinated and interconnected arrangement involving round tripping of funds, creation of purported unsecured loan liabilities and subsequent conversion of a substantial portion of such liabilities into equity shares of DBIL, with Surendra Jain and Virendra Jain being key conspirators,” said whole time member Kamlesh Chandra Varshney in the interim order released August 19.
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