SEBI Cracks Down On Omaxe And Promoter-Linked Entities, Market Ban Follows Minimum Public Shareholding Breach
Mumbai: The Securities and Exchange Board of India (SEBI) has barred Omaxe Ltd and several promoter-linked entities from the securities market after finding that funds connected to the real estate company were used to buy its shares during 2013 offer-for-sale transactions. In its order, SEBI said the purchases created a misleading impression that Omaxe had met minimum public shareholding (MPS)…
The Securities and Exchange Board of India (SEBI) has imposed severe restrictions on Omaxe Ltd and several entities linked to the company's promoters following allegations of misrepresentation regarding the company's minimum public shareholding (MPS). SEBI barred Omaxe and the promoter-linked entities from the securities market, preventing them from buying, selling, or dealing in securities for a period of three months.
The regulator found that funds from Omaxe and its associated entities were used to buy Omaxe shares during two offer-for-sale tranches in 2013, creating a misleading impression that the company had met MPS requirements. Omaxe's CEO Rohtas Goel, his brothers Sunil Goel and Jai Bhagwan Goel, as well as the firms Dream Home Developers and Guild Builders, have been restricted from market dealings for a year.
SEBI also imposed a fine of ₹27 lakh on Omaxe, with fines of ₹37 lakh each for Rohtas, Sunil, and Jai Bhagwan Goel, and another ₹27 lakh for Dream Home Developers and Guild Builders. The regulator allows these entities to close their existing derivatives positions within three months or by contract expiry.
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