Market regulator finds prima facie evidence of fund round-tripping; six preferential allottees barred from disposing of company shares
New Delhi (Economy India): : Markets regulator Securities and Exchange Board of India (SEBI) has restrained six preferential allottees of Dhenu Buildcon Infra Ltd from disposing of the company’s shares after finding prima facie evidence of round-tripping of funds involving purported loan transactions worth ₹1,000 crore.
In an 112-page interim order issued on Wednesday, SEBI said its examination had raised serious concerns over the manner in which funds were routed into the company in December 2024.
₹1,000 Crore Received Through 46 Transactions
According to SEBI’s order, Dhenu Buildcon Infra purportedly received approximately ₹1,000 crore from seven entities through 46 separate transactions over an eight-day period in December 2024.
However, an examination of the relevant bank accounts reportedly showed that the funds were not supported by corresponding fresh inflows from independent external sources.
The findings prompted the regulator to examine whether the transactions represented genuine financial arrangements or whether funds had been circulated among connected entities.
SEBI Flags Possible Round-Tripping
Round-tripping generally refers to the movement of funds through multiple entities or accounts before the money returns to its original or related source, potentially creating the appearance of genuine financial activity.
In this case, SEBI’s preliminary findings indicate that the purported loans may not have represented genuine fresh funding from independent sources.
The regulator’s interim action is aimed at preventing further disposal or movement of the securities while the matter remains under examination.
Six Preferential Allottees Restrained
SEBI has restrained six preferential allottees from disposing of Dhenu Buildcon Infra shares covered by its order.
The restrictions are interim in nature and have been imposed based on the regulator’s prima facie findings. The action does not by itself constitute a final determination of wrongdoing.
Bank Account Examination Raises Concerns
The regulator’s investigation focused significantly on the movement of money through bank accounts associated with the transactions.
The absence of corresponding fresh external inflows raised questions about the source and economic substance of the purported ₹1,000 crore loan transactions.
SEBI’s findings highlight the importance of tracing the ultimate source of funds in preferential allotments and other corporate transactions, particularly where large amounts move between multiple entities within a short period.
What Is Round-Tripping of Funds?
Round-tripping can potentially distort the appearance of a company’s financial position by making funds appear to originate from independent sources when they may actually be connected to the company or its associates.
Such arrangements can raise concerns about:
- Artificial inflation of financial activity
- Misrepresentation of funding sources
- Preferential allotment transactions
- Related-party or connected-entity dealings
- Possible market manipulation or securities-law violations
SEBI’s interim order seeks to preserve the status quo while the regulator continues its proceedings.
| Parameter | Details |
|---|---|
| Company | Dhenu Buildcon Infra Ltd |
| Regulator | SEBI |
| Amount Under Examination | ₹1,000 crore |
| Number of Transactions | 46 |
| Transaction Period | December 2024 |
| Entities Providing Funds | 7 |
| Preferential Allottees Restrained | 6 |
| SEBI Order | Interim order |
| Order Length | 112 pages |
| Key Concern | Prima facie round-tripping of funds |
SEBI Steps Up Scrutiny of Fund Transactions
The action against Dhenu Buildcon comes amid SEBI’s continuing focus on transparency in corporate fund flows, preferential allotments and transactions involving connected entities.
The regulator’s examination of bank-account trails demonstrates the importance of verifying not only the stated nature of a transaction but also the ultimate source and movement of funds.
The case will now proceed through the regulatory process, with the interim restrictions remaining an important measure to prevent the potentially affected securities from being disposed of while the matter is examined further.
Economy India | www.economyindia.in
