Sebi bars three directors of Surana Corporation from capital market for 5 years

Sebi Friday barred three directors of Surana Corporation from the securities market and also restrained them from holding any position in any listed company for five years for misrepresentation of financial results of the firm.

The regulator also ordered a director, K E Devarajan, to ensure that internal records of Surana Corporation reflect the correct data and publish forthcoming quarterly filings showing the changes.

The directors -- Vijayraj Surana, S Guruswamy and K E Devarajan -- were non-independent directors of Surana Corporation Ltd (SCL) during the period of investigation (2013-15), the Securities and Exchange Board of India (Sebi) said.

During the examination, Sebi found that directors were responsible for falsification of gold purchases and sales in the accounts of the company and were involved in accounting manipulations thereby created a misleading picture to influence the decision of investors dealing in the securities of Surana.

The manipulation of accounts was violative of PFUTP (Prohibition of Unfair Trade Practices), Sebi said.

"Noticees (three directors)... as directors of SCL are liable for manipulation of books of accounts and misrepresentation of financial results declared by the company for the period of 2013-2015," said the regulator.

Accordingly, Sebi barred the directors for five years from the securities market.