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Carlyle deal case: PNB Hsg Fin, 12 individuals settle with Sebi

Business Standard  

PNB Housing Finance and 12 individuals have settled with markets regulator Sebi a case of alleged violations of norms in preferential securities issuance to US-based Carlyle Group for a deal that was scrapped later. PNB Housing Finance and the 12 individuals, who were directors of the company as on May 31, 2021, jointly paid INR 72.76 lakh towards settlement. The amount includes INR 44.26 lakh as legal costs. The order came after PNB Housing Finance along with its directors approached Sebi proposing to settle the alleged violations of LODR (Listing Obligations and Disclosure Requirement) rules in the Carlyle Group case "without admitting or denying the findings" through a settlement order. The case relates to PNB Housing Finance making a corporate announcement that its board of directors in May 2021 about approving a preferential issue of shares and warrants to entities belonging to the Carlyle Group. A controversy erupted with regard to the valuation of the shares to be offered to the investors. Sebi raised concerns and put the deal on hold and called for a revaluation of the shares.