Archive · 13 Aug 2025
Sebi Bans Wadhawans from Markets, Imposes ₹120 Crore Fine
The financial market regulator, Sebi, has taken action against some people who used to be in charge of a company called DHFL.
They are banned from trading in the stock market for a while and have been fined because they moved money around in a suspicious way and made the company's financial reports look better than they were.
They gave loans to other companies that they were secretly connected to, but they made it seem like they were regular home loans.
This tricked investors into thinking the company was doing better than it actually was.
The main people involved were the Wadhawan brothers.
Sebi banned Kapil and Dheeraj Wadhawan, and four others from securities markets for up to five years.
They were penalized a total of ₹120 crore for fund diversion and fabricating financial records.
The Wadhawans, along with others, were involved in a scheme to divert funds to entities linked to them.
The scheme involved misrepresenting loans as retail housing loans to create a false financial picture.
Sebi found the Wadhawans orchestrated the scheme which resulted in the misrepresentation of DHFL's financial health.
- Who
- Sebi, Kapil Wadhawan, Dheeraj Wadhawan, Rakesh Wadhawan, Sarang Wadhawan, Harshil Mehta, and Santosh Sharma.
- What
- Sebi banned Kapil and Dheeraj Wadhawan, and four others from the securities market and imposed a fine of ₹120 crore for fund diversion and fabrication of records.
- When
- August 13.
- Where
- Securities markets.
- Why
- For diverting funds and fabricating financial records.
Sebi's Stance
N/A
Fraudulent Scheme
Sebi's Stance
Sebi found that DHFL, its promoters, and key personnel engaged in a fraudulent scheme to divert funds.
N/A
N/A
Penalties
Sebi's Stance
Sebi imposed bans and penalties to punish the accused.
N/A
N/A
- Regulator
- Sebi
- Individuals Banned
- Kapil Wadhawan, Dheeraj Wadhawan, Rakesh Wadhawan, Sarang Wadhawan, Harshil Mehta, Santosh Sharma
- Total Fine
- ₹120 crore
- Duration of Ban
- Up to 5 years
- Reason for Action
- Fund diversion, fabricating records
- Company Involved
- DHFL
Sources
Fake FDs, loan scams, missing crores: HDFC probes fraud at Kashmir's Shopian branch, two ex-managers booked
UP EOW arrest two key accused in over ₹50-crore embezzlement case
SEBI Bans DHFL's Kapil Wadhawan, 5 Others From Securities Market For 5 Years
SEBI bans DHFL’s Wadhawan brothers from securities market for 5 years
Searches in Srinagar in fraud case
