SEBI has barred six preferential allottees from selling their shares after finding evidence of round‑tripping of Rs 1,000 crore.
In a 112‑page interim order issued on Wednesday, SEBI highlighted 46 transactions over eight days in December 2024, where the company received Rs 1,000 crore from seven entities.
Bank account checks showed no fresh inflows from independent sources; instead, an initial Rs 25 crore was moved through several entities and returned to DBIL, creating the illusion of Rs 1,000 crore receipts.
Of the Rs 1,000 crore, Rs 840 crore was later converted into equity through a preferential allotment of 5,91,54,92,940 shares.
The six allottees – Golkonda Aluminium Extrusions, Shanta Agencies, Shri Niwas Leasing and Finance, Tiaan Consumer, Twinkle Mercantiles & Credits, and Utsav Securities – together own about 99.70% of DBIL’s diluted equity.
SEBI valued the preferential shares at roughly Rs 5,667.04 crore using the three‑month VWAP before July 31, 2026.
After the lock‑in period ended on August 15, the allottees began selling shares, selling 17,444 shares worth Rs 1.34 lakh in just two days.
Allowing these sales at market prices could have yielded gains of about Rs 5,667 crore for the allottees, harming ordinary investors.
SEBI identified Virendra and Surendra Jain as key players, noting their role in setting up and managing the network of entities, controlling banking arrangements and fund transfers.
As a result, SEBI has banned the six allottees from disposing of DBIL shares and barred the two individuals from any securities transactions until further notice. It also ordered DBIL to pause corporate actions such as capital changes, bonus or rights issues, stock splits or dividends.
The investigation began on April 20, 2026, after a reference from the Serious Fraud Investigation Office. SEBI examined the matter from August 1, 2024, to July 31, 2026.