Markets regulator Sebi today banned seven individuals, including Ricoh India MD and CEO A T Rajan, from the securities market in a matter pertaining to mis-statements in the books of accounts of the company.
The other six are T Takano, Manoj Kumar, Arvind Singhal, Anil Saini, Bibek Chowdhury and Amalendu Mukherjee.
Takano and Kumar both held in the past position of managing director and chief executive of Ricoh India.
In an interim order, Sebi said the seven individuals "are restrained from accessing the securities market or buying, selling or otherwise dealing in the securities market in any manner whatsoever, either directly or indirectly".
"Sebi shall appoint an independent audit firm for conducting a detailed forensic audit of the books of accounts of Ricoh for the financial year 2012-13 onwards till date, the cost of which shall be borne by Ricoh," the regulator said.
Sebi has also directed Ricoh, its directors and the seven individuals to extend "all necessary cooperation to the independent audit firm so appointed" and also to furnish all information or documents sought from them from time to time.
The independent audit firm has to submit a report to the Securities and Exchange Board of India (Sebi) within three months from the date of its appointment.
Sebi is examining the role of entities and key managerial persons responsible for mis-statements in the books of accounts of Ricoh.
In its order, Sebi said that Ricoh's financial health has been deteriorating and even after the infusion of funds by its promoters, the company has neither been able to become profitable, nor is able to meet its financial liabilities.
It also said that there is an urgent need for Sebi to intervene and take steps for determining the full extent of fraud by conducting a detailed forensic audit of the company, covering the years when the fraud is suspected to have started and if required, even beyond that, to protect the interest of the public shareholders.
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