20 August 2026

SEBI action against Dhenu Buildcon

The case serves as a practical example of corporate financial fraud and money laundering mechanisms, which can be used as context for questions on regulatory oversight and financial transparency.

Questions

1. Explain the concept of round-tripping of funds in the context of corporate governance. How does the Securities and Exchange Board of India (SEBI) ensure market integrity against such financial irregularities? 150 words
   Attempt this — 150 words in 8 min

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Prelims

1. In the context of financial regulations, what does 'round-tripping' of funds typically refer to?

   1. A The legal practice of issuing preferential shares to existing shareholders to raise capital.
   2. B The movement of funds out of a country and back into it to disguise the original source or nature of the capital.
   3. C The process of converting unsecured loans into equity shares to increase dividend payouts.
   4. D The systematic reduction of corporate debt through the sale of non-core assets.