Description

SEBI restrains six individuals including Wadhawan family members from securities market for periods ranging from 3-5 years in DHFL matter.

Summary

SEBI has issued a comprehensive order restraining six individuals from accessing securities markets for periods ranging from 3-5 years in connection with Dewan Housing Finance Corporation Ltd. (DHFL). This builds upon previous restraint orders from September 2020.

Key Points

  • Six individuals restrained from securities market access and prohibited from buying, selling or dealing in securities
  • Restraint periods: Kapil Wadhawan (5 years), Dheeraj Wadhawan (5 years), Rakesh Wadhawan (4 years), Sarang Wadhawan (4 years), Harshil Mehta (3 years), Santosh Sharma (3 years)
  • Individuals also prohibited from being associated with securities market as directors or Key Managerial Personnel
  • Order effective from August 12, 2025
  • Previous restraint order from September 22, 2020 referenced

Regulatory Changes

SEBI order WTM/AN/CFID/CFID/31591/2025-26 dated August 12, 2025 imposes dual restrictions:

  1. Complete prohibition from securities market access and trading
  2. Prohibition from holding director or KMP positions in listed companies, SEBI-registered intermediaries, or public companies raising funds

Compliance Requirements

  • NSE members must ensure compliance with the restraint orders
  • Members should refer to consolidated list of debarred entities on NSE website
  • Any queries to be directed to dl-invsg-all@nse.co.in
  • Members must verify entity status before allowing market access

Important Dates

  • August 12, 2025: SEBI order effective date
  • August 13, 2025: NSE circular date
  • September 22, 2020: Previous restraint order reference date

Impact Assessment

The order primarily affects the named individuals and their ability to participate in securities markets. Market impact is limited as it pertains to specific entities already under previous restraint. The action demonstrates continued regulatory enforcement in the DHFL matter and serves as a deterrent for market misconduct.

Impact Justification

Significant regulatory action against key individuals but limited to specific entities