SAT quashes Sebi’s Rs 20-lakh penalty on DHFL

The Securities Appellate Tribunal (SAT) has quashed a Securities and Trade Board of India (Sebi) order imposing a penalty of Rs 20 lakh on Dewan Housing Finance Corporation (DHFL) for not complying with norms whereas issuing non-convertible debentures (NCDs) in 2016-17.

The mortgage lender had moved SAT arguing that no motion will be taken towards the corporate as it’s present process insolvency proceedings.

FE had earlier reported that Sebi despatched a present trigger discover to DHFL for non-maintenance of debenture redemption reserve (DRR). Firms elevating capital by means of debentures are required to create a debenture redemption reserve as a provision to guard buyers, in case of default. Sad with the reason given by DHFL, the market regulator slapped a penalty of Rs 20 lakh on the corporate in Might.

The Committee of collectors (CoC) had earlier determined to increase the deadline for submission of bids for DHFL until October 17. In a lenders’ assembly final month, DHFL administrator R Subramaniakumar mentioned 5 critical bidders had been conducting due diligence for the corporate.

DHFL had earlier shortlisted 22 candidates for the corporate. The troubled lender had given candidates the choice to bid for the entire firm or in components. Of the full candidates, 14 had submitted expressions of curiosity (EoIs) for your complete enterprise of DHFL, together with KKR India Monetary Companies, Welspun Group, Adani Group, Oaktree Capital and Bain Capital. DHFL is present process insolvency proceedings on the Nationwide Firm Legislation Tribunal (NCLT), Mumbai.