Regulatory Violations Uncovered

In a significant development, the Securities and Exchange Board of India (Sebi) has informed the Supreme Court about regulatory violations by the erstwhile Indiabulls Housing Finance, now rebranded as Sammaan Capital. The violations pertain to the Sebi (LODR) Regulations, 2015, prompting an administrative warning to the company.

Regulatory Actions and Responses

Sebi's examination revealed that certain transactions by Indiabulls Housing Finance violated established regulations. Consequently, the markets regulator issued a warning and notified the Reserve Bank of India (RBI) and the corporate affairs ministry about these findings. Despite being primarily regulated by the National Housing Bank and RBI, Sebi took action based on specific transactions referred to it.

Legal Proceedings and Public Interest

The disclosure comes in response to a petition by the NGO Citizens Whistle Blower Forum, which sought an investigation into alleged fund siphoning by the former promoters of IBHFL. This case highlights the ongoing scrutiny of financial institutions and the importance of regulatory compliance in the housing finance sector.