AK Capital Services and four related group companies have reached a settlement with the Securities and Exchange Board of India (SEBI) regarding alleged violations in the public issue of non-convertible debentures (NCDs) by Dewan Housing Finance Limited (DHFL). The settlement, detailed in an order dated October 16, covers five companies within the A.K. Capital Group.

Settlement Details

The companies involved in the settlement and their respective settlement amounts are as follows:

Alleged Violations

SEBI's investigation revealed that the A.K. Capital Group allegedly:

1. Used Power of Attorney to submit bid applications for 14,08,015 NCDs on behalf of 911 applicants in DHFL's public issue.
2. Provided loans at 11% and 10.5% interest rates to applicants for NCDs with lower coupon rates of 8.90% and 9.00%.
3. Sold the allotted NCDs through off-market transactions while providing guaranteed profitable exits.

The group reportedly made a net gain of ₹26,05,075 from these transactions.

Settlement Terms

Under the settlement terms:

• The companies will pay a total of ₹4,33,41,106, which includes disgorgement amounts and 12% annual interest on unlawful gains.
• SEBI will not initiate enforcement action for these violations.
• The order reserves SEBI's rights to take action if any misrepresentation or breach of conditions is found.

Company Statement

AK Capital Services has confirmed that there is no expected material impact on its financial or operational activities due to this settlement.

Recent Management Changes

In a separate development, Mr. Vikram Puri, Head Director-Corporate Relations of AK Capital Services Limited, has resigned from his position effective October 17, citing personal and other professional commitments.

This settlement highlights the regulatory scrutiny on financial practices in the Indian capital markets and underscores the importance of adherence to regulatory norms in public issues of securities.

AK Capital Services Limited has received a request from a member of its Promoter Group to reclassify his shareholding status, according to a recent regulatory filing.

Reclassification Request Details

Mr. Abhinav Kumar Mittal, currently categorized under the 'Promoter Group', has submitted a formal request to the company seeking reclassification of his status from 'Promoter Group' to 'Public' category. This request falls under Regulation 31A of the Securities and Exchange Board of India (SEBI) Listing Obligations and Disclosure Requirements (LODR) Regulations, 2015.

Current Shareholding

It's noteworthy that Mr. Mittal presently holds no equity shares in AK Capital Services Limited, representing a 0.00% shareholding in the company.

Next Steps

In response to this request, AK Capital Services has outlined the following course of action:

1. The company will take necessary steps in compliance with Regulation 31A of the SEBI Listing Regulations.
2. The request will be placed before the Board of Directors for their analysis and views.
3. The company will apply for required regulatory approvals, including no-objection certificates from relevant authorities.

Regulatory Compliance

The intimation of this request was made by AK Capital Services in adherence to Regulation 31A(8)(a) of the SEBI Listing Regulations. The company's Company Secretary and Compliance Officer, Mr. Subodh More, confirmed this development in a regulatory filing.

This move highlights the dynamic nature of shareholding structures in listed companies and the regulatory framework that governs such changes. Investors and market participants will likely keep a close watch on the outcome of this reclassification request and its potential implications for AK Capital Services' shareholding pattern.