Markets regulator Sebi on Friday levied a fine of Rs 20 lakh on Dewan Housing Finance Corporation Ltd (DHFL) for not complying with market norms while issuing non-convertible debentures (NCDs). The markets watchdog had received a reference from Catalyst Trusteeship Ltd, a Sebi-registered debenture trustee, pertaining to NCDs issued by DHFL.
The regulator said that as of May 2019, the firm issued 37 NCDs that were publicly placed and 201 NCDs that were privately placed.
It was found that the company did not create debenture redemption reserve (DRR) for 15 ISINs in the financial year 2016-17 and 37 ISINs in the financial year 2017-18.
International Securities Identification Numbers (ISINs) are used to number specific securities.
Besides, it also failed to deposit a little over Rs 700 crore in the financial year 2019-20, towards DRR requirement.
Additionally, the firm did not submit the audited financial result for the financial year 2018-19 as prescribed under the Listing Obligations and Disclosure Requirements (LODR) norms.
Accordingly, the regulator slapped a fine of Rs 20 lakh on the company for not complying with various market norms.
Source INDIA TV