On July 16, 2021, Securities and Exchanges Board of India defended its decision to intervene in the matter of preferential allotment of shares to a select group of investors led by Carlyle group, market regulator SEBI mentioned that board of PNB Housing Finance Limited had prima facie failed to uphold the interests of minority shareholders of the company. In its concluding arguments before the Securities Appellate Tribunal SEBI maintained it was necessary for shareholders to get the correct valuation at which investors led by the Carlyle Group would acquire shares and management control of the mortgage lender. Further, SEBI counsel argued that to ensure transparency and fairness, PNB Housing should have submitted an independent valuation report, as stipulated in tt's articles of association (AoA), which in turn would have allowed shareholders to vote accordingly in the Company's recently held extraordinary general meeting.