New Delhi: Securities and Exchange Board of India ,SEBIThe Fugitive was banned on Friday businessman vijay mallya He is prohibited from doing business in the securities market and being associated with any listed company for a period of three years. This decision was taken in connection with the flow of money into the Indian securities market through foreign bank accounts with UBS AG.
Authorities are making efforts to bring Mallya back from the United Kingdom to face fraud charges related to his now defunct company Kingfisher Airlines. He has been staying in the United Kingdom since March 2016.
According to Sebi, the fugitive businessman has been barred from “associating with any listed company or proposed to be listed company, in any capacity, directly or indirectly, for a period of three years”. vijay mallya There is a prohibition on engaging, directly or indirectly, in any securities-related transactions.
What is the matter?
SEBI conducted an investigation from January 2006 to March 2008, which 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 routed through various offshore accounts.
The investigation revealed that the former liquor baron had invested money in the Indian securities market using Matterhorn Ventures, and that the money had passed through several accounts at UBS AG. In an attempt to conceal his true identity, Mallya employed various offshore entities to execute these transactions.
In her 37-page order, Sebi chief general manager Anita Anoop said, “The noticee in this case (Mallya) has devised a scheme of indirectly trading in the shares of his group companies through layered transactions/fund flows, using his overseas related companies through the FII route to trade in the Indian securities market in defiance of his identity and 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.
“The noticee has materially misrepresented the truth and concealed a material fact which is known to it that the shareholding shown in the name of Matterhorn was in fact in the promoter category as it was fully funded by the noticee, thereby violating the provisions of the PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) Regulations,” the regulator said.
As a result, SEBI has barred Mallya from “entering into the securities market and prohibiting him from purchasing, selling or otherwise dealing in securities, directly or indirectly, or being associated with the securities market in any manner whatsoever for a period of three years.”
The Securities and Exchange Board of India (SEBI) has taken action against former UB Group chief and majority shareholder of United Spirits Limited (USL) Vijay Mallya. The regulatory body began investigating Mallya's transactions after receiving relevant data from the Financial Conduct Authority (FCA).
In its previous order in June 2018, SEBI had barred Mallya from participating in the securities market for a period of three years from June 1, 2018 to May 31, 2021.
The ban was imposed due to Mallya's involvement in manipulative activities, including diversion of funds and improper transactions related to USL shares. Additionally, SEBI barred him from holding the position of director or key managerial personnel in any listed company for a period of five years.
Mallya's attempt to appeal against the said order was unsuccessful, and his appeal was dismissed.
According to stock exchange data, he holds an 8.1% stake in United Breweries, the company that makes Kingfisher beer, and is the company's chairman. Apart from this, he also holds a 0.01% stake in United Spirits, the company that makes Smirnoff vodka.
(with inputs from agencies)
Authorities are making efforts to bring Mallya back from the United Kingdom to face fraud charges related to his now defunct company Kingfisher Airlines. He has been staying in the United Kingdom since March 2016.
According to Sebi, the fugitive businessman has been barred from “associating with any listed company or proposed to be listed company, in any capacity, directly or indirectly, for a period of three years”. vijay mallya There is a prohibition on engaging, directly or indirectly, in any securities-related transactions.
What is the matter?
SEBI conducted an investigation from January 2006 to March 2008, which 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 routed through various offshore accounts.
The investigation revealed that the former liquor baron had invested money in the Indian securities market using Matterhorn Ventures, and that the money had passed through several accounts at UBS AG. In an attempt to conceal his true identity, Mallya employed various offshore entities to execute these transactions.
In her 37-page order, Sebi chief general manager Anita Anoop said, “The noticee in this case (Mallya) has devised a scheme of indirectly trading in the shares of his group companies through layered transactions/fund flows, using his overseas related companies through the FII route to trade in the Indian securities market in defiance of his identity and 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.
“The noticee has materially misrepresented the truth and concealed a material fact which is known to it that the shareholding shown in the name of Matterhorn was in fact in the promoter category as it was fully funded by the noticee, thereby violating the provisions of the PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) Regulations,” the regulator said.
As a result, SEBI has barred Mallya from “entering into the securities market and prohibiting him from purchasing, selling or otherwise dealing in securities, directly or indirectly, or being associated with the securities market in any manner whatsoever for a period of three years.”
The Securities and Exchange Board of India (SEBI) has taken action against former UB Group chief and majority shareholder of United Spirits Limited (USL) Vijay Mallya. The regulatory body began investigating Mallya's transactions after receiving relevant data from the Financial Conduct Authority (FCA).
In its previous order in June 2018, SEBI had barred Mallya from participating in the securities market for a period of three years from June 1, 2018 to May 31, 2021.
The ban was imposed due to Mallya's involvement in manipulative activities, including diversion of funds and improper transactions related to USL shares. Additionally, SEBI barred him from holding the position of director or key managerial personnel in any listed company for a period of five years.
Mallya's attempt to appeal against the said order was unsuccessful, and his appeal was dismissed.
According to stock exchange data, he holds an 8.1% stake in United Breweries, the company that makes Kingfisher beer, and is the company's chairman. Apart from this, he also holds a 0.01% stake in United Spirits, the company that makes Smirnoff vodka.
(with inputs from agencies)