SEBI Bans 6 Entities from Selling Dhenu Buildcon Infra Shares

The Securities and Exchange Board of India (Sebi) has taken stringent action against Dhenu Buildcon Infra (DBIL), prohibiting six entities from divesting their shares and restricting two additional entities from participating in the securities market.

Regulatory Clampdown on DBIL

This decisive move by the regulator addresses alleged manipulation of DBIL’s financial statements, which reportedly involved intricate circular bank transactions and extensive cross-shareholdings.

Furthermore, Sebi’s interim order directs DBIL to immediately cease all corporate actions. This includes any alterations to its capital structure or the distribution of dividends, ensuring no further changes until investigations conclude.

Allegations of Financial Misconduct

The regulatory body’s probe highlighted a pattern of fraudulent activities, specifically the artificial rotation of funds designed to improperly inflate the company’s valuation.

Investigations also revealed instances where preference shares were allegedly obtained illicitly, further complicating the company’s financial integrity.

The Unsecured Loan and Equity Conversion Mechanism

A key aspect of the alleged scheme involved DBIL securing a substantial amount in unsecured loans.

• DBIL reportedly obtained Rs 1,000 crore in unsecured loans.
• These loans were sourced from seven entities during the FY 2024-25 fiscal year.
• Subsequently, Rs 840 crore of this loan amount was converted into equity.
• This conversion occurred through a preferential allotment to six of the seven entities in December 2025.

These detailed findings underscore Sebi’s commitment to ensuring transparency and fair practices within the Indian securities market, especially concerning financial reporting and corporate governance.