Delphi World Money Ltd has settled adjudication proceedings initiated by the market regulator Securities and Exchange Board of India (SEBI) by paying a settlement amount of ₹37.05 lakh, bringing to a close allegations relating to misrepresentation in financial statements and non-disclosure of related party transactions for the FY18–19.
SEBI’s action followed an examination report received from National Stock Exchange (NSE) flagging the deteriorating financials of Delphi World Money. Based on the report, the market regulator conducted an investigation for FY18–19 to ascertain whether the company had made misrepresentations or misstatements in its financial statements, in violation of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003, and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
One of the key findings of the investigation related to the incorrect presentation of profit from continuing operations. During FY18–19, Delphi World Money sold certain equity investments and reported the net gain of ₹26.70 crore under 'other income' in its statement of profit and loss.
However, SEBI observed that these investments were classified as fair value through other comprehensive income (FVOCI) under Indian Accounting Standard (Ind AS) 109. As per the standard, gains or losses on the sale of such investments should be routed through other comprehensive income and transferred to retained earnings, and not recognised in the profit and loss statement.
SEBI noted that had the accounting treatment been in line with Ind AS 109, the company’s profit from continuing operations would have turned into a loss. While Delphi World Money reported a loss before tax of ₹18.35 crore for FY18–19, the loss would have widened to ₹45.05 crore if the FVOCI gains had been accounted for correctly. The regulator held that the incorrect classification led to an overstatement of profits from continuing operations for the year.
The investigation also highlighted lapses in the disclosure of related party transactions. SEBI observed that during FY18–19, Delphi World Money exited its wind energy business by divesting wind farm assets in Tamil Nadu and Maharashtra. One of the Maharashtra wind farms was sold to Karma Energy Ltd, a listed company belonging to the promoter group. Although the combined book value of the wind farms was disclosed at ₹25.71 crore, the transaction with Karma Energy was not disclosed as a related party transaction in the company’s annual report for the year.
In addition, SEBI examined a provision of ₹28.12 crore created by Delphi World Money towards expected claims linked to an international money transfer contract. The provision was subsequently reduced to nil in FY19–20, when the liability was transferred to EbixMoney Express Pvt Ltd, a related party, after audit committee approval. While the payment and related party disclosure were made in FY19–20, SEBI noted that the transaction had effectively been executed in FY18–19 and should have been disclosed in that year in accordance with Ind AS 24. The failure to do so was held to be another disclosure violation.
Based on these findings, SEBI initiated adjudication proceedings and issued a show cause notice (SCN) in April 2024, proposing penalties under Section 15HB of the SEBI Act, 1992. Pending the proceedings, Delphi World Money opted to settle the matter without admitting or denying the findings, by filing a settlement application under the SEBI (Settlement Proceedings) Regulations, 2018.
The proposed settlement terms were reviewed by SEBI’s internal committee(IC) and later by the high powered advisory committee (HPAC). In its meeting held in January 2026, the HPAC recommended settlement of the case upon payment of ₹37.05 lakh. The recommendation was accepted by SEBI panel of whole-time members (WTM), following which a demand notice was issued.
Delphi World Money remitted the settlement amount on 12 February 2026, and SEBI confirmed receipt of the funds. With this, the adjudication proceedings were disposed of under Section 15JB of the SEBI Act, and the settlement order came into force with immediate effect on 20 February 2026.
SEBI clarified that the settlement order is without prejudice to its right to take further action in the event of any misrepresentation, breach of settlement terms, or discrepancies in arriving at the settlement.
