IGI Logo

The Securities and Exchange Board of India (SEBI) has found real estate developer Omaxe Ltd and certain promoter?linked entities liable for routing company and group funds to acquire Omaxe shares in 2013 offer-for-sale (OFS), a move which allegedly faked compliance with minimum public shareholding norms. 

In an order, the market regulator said Omaxe indirectly provided financial assistance for the purchase of its own shares and allegedly restrained the company from accessing the securities market for three months.

Promoter Rohtas Goel, his brothers Sunil Goel and Jai Bhagwan Goel, and promoter?linked firms Dream Home Developers and Guild Builders were restrained for one year.

SEBI said the noticees are prohibited from buying, selling or otherwise dealing in securities (including units of mutual funds), directly or indirectly, or associated with the securities market in any manner during the period of debarment.

SEBI imposed penalties of Rs 27 lakh on Omaxe, Rs 37 lakh each on Rohtas, Sunil and Jai Bhagwan Goel, and Rs 27 lakh each on Dream Home Developers and Guild Builders.

The regulator said funds totalling Rs 46.5 crore originating from Omaxe and group entities were routed through DVM Realtors, Garv Buildtech and Jeet Builders to several entities. These funds were used to subscribe to shares in two offer?for?sale tranches on June 3 and October 29, 2013.

"The resultant misrepresentation of the shareholding pattern misled investors and the market at large regarding the true ownership structure and the company’s compliance status," the order said.

Noticees are allowed to close out or square off any open position in any exchange traded derivative contracts, as on the date of the order, within 3 months from the date of order or at the expiry of such contracts, whichever is earlier.