Sebi bars Man Industries, top executives for 2 yrs over 'fund diversion'

India's market regulator barred Man Industries and three of its top executives, including the chairman, from accessing the securities markets for two years over alleged fund diversion, according to an order issued on Monday.

The regulator found the company failed to consolidate its unit, Merino Shelters, in its financials between fiscal years 2015 and 2021, misrepresented related-party transactions, and engaged in round-tripping of funds to mask its financial position.

It will seek a penalty of 2.5 million rupees ($28,186.48) each from the pipes and steel products maker, its chairman Ramesh Mansukhani, managing director Nikhil Mansukhani, and former finance chief Ashok Gupta.

 

Sebi appointed a forensic auditor in November 2021 to examine the company's books of accounts during the investigation period.