The Securities and Exchange Board of India (SEBI) has issued an interim order against Dhenu Buildcon over prima facie concerns related to alleged financial irregularities and possible fraud. The regulator has barred the company from undertaking any further corporate action until further orders. Six preferential allottees linked to the company have also been restrained from selling, transferring or otherwise disposing of their Dhenu Buildcon shares.
The action comes after SEBI raised serious questions over the preferential allotment carried out by the company and the substantial change in its shareholding structure following the transaction. According to the interim order, the six allottees together acquired nearly 99.7% of the company’s diluted equity following the preferential allotment. The regulator has flagged the scale of the stake and is examining the nature of the transactions and the underlying economic activity.
SEBI Examines ₹1,000 Crore Fund Inflow
SEBI has also identified a fund inflow of around ₹1,000 crore into Dhenu Buildcon. The regulator has raised concerns over the possibility of alleged round-tripping of funds.
Round-tripping refers to transactions in which money moves through multiple accounts or entities and eventually returns, directly or indirectly, to the original source or parties connected to it. Such transactions can raise regulatory concerns when they appear to lack a genuine underlying economic purpose.
The investigation is therefore examining not only the movement of the funds but also their actual source, purpose and end use. SEBI is looking into whether the transactions may have been structured in a manner that could influence the company’s financial position, ownership pattern or securities market activity.
Six Allottees Restrained From Disposing Shares
Under the interim directions, the six preferential allottees have been prohibited from selling, transferring or otherwise disposing of their Dhenu Buildcon shares. The restriction will remain in force until further orders.
The move is intended to prevent any change in ownership or disposal of securities that could potentially affect the ongoing regulatory proceedings. By restricting the allottees from dealing with the shares, SEBI has sought to preserve the existing position while the matter remains under investigation.
The company itself has also been restrained from undertaking further corporate actions. Such restrictions can prevent changes to the company’s capital structure, shareholding pattern or other significant corporate arrangements while regulatory scrutiny is underway.
Investor Protection Remains Key Focus
SEBI’s interim action is aimed at protecting investors and maintaining the integrity and transparency of the securities market during the investigation. The regulator’s concerns relate to transactions that, at this stage, have raised prima facie questions requiring further examination.
The proceedings remain interim in nature, and the allegations or concerns mentioned in the order should not be treated as a final finding of wrongdoing or guilt against the company or the concerned entities.
The final outcome will depend on the evidence gathered during the investigation, including financial records, transaction details, fund flows and other relevant documents. Further regulatory or legal action, if warranted, will be determined based on the findings of the investigation.
