2024-07-30 07:03:46
New Delhi: The Securities and Exchange Board of India (SEBI) on Friday banned fugitive businessman Vijay Mallya from trading in the securities market and being associated with any listed company for three years. This decision was taken in the case of sending money to the Indian securities market through foreign bank accounts of UBS AG. Officials are trying to bring Mallya back from the United Kingdom to face fraud charges related to his defunct company Kingfisher Airlines. He has been living in the UK since March 2016. According to SEBI, Mallya has been banned from being associated directly or indirectly in any way with any listed company or proposed listed company for three years.
Now defaulters like Nirav Modi and Vijay Mallya will not be able to run away, the government has provided a permanent solution!
Know what is the whole matter
SEBI conducted an investigation from January 2006 to March 2008. It revealed that Mallya had used foreign institutional investor (FII) Matterhorn Ventures to secretly trade shares of his group companies, Herbertson Limited and United Spirits Limited (USL). The funds for these transactions were sent through different foreign accounts. The investigation revealed that Mallya had sent funds to the Indian securities market using Matterhorn Ventures.
Mallya accused of hiding his identity
Mallya had appointed different foreign entities to carry out whatever transactions took place. This was done so that Mallya could hide his identity. SEBI Chief General Manager Anita Anup said in her 37-page order that the notice recipient (Mallya) in this case has hidden his identity. Also, he has disregarded regulatory norms. Anup said that such acts of Mallya are not only fraudulent and deceptive, but also pose a threat to the integrity of the securities market.
SEBI said- the truth was misrepresented
SEBI said that Mallya had misrepresented the truth and concealed a material fact. He knew that the shareholding shown in the name of Matterhorn was actually in the promoter category, as it was fully funded by Mallya. This violated the provisions of PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) regulations.