Mumbai: Market regulator SEBI The fugitive billionaire is banned vijay mallya for three years for illegally sending money via layered transactions Foreign entities and forced banks to raise the prices of their companies and make profits from it. All his holdings in stocks and mutual funds in India have also been frozen, while he has been barred from associating as a director with any listed Indian company.
SEBI's investigation found that Mallya had misused the foreign institutional investment (FII) route to trade in the domestic market by concealing his identity in the name of various foreign registered entities in whose names bank accounts were opened with UBS. SEBI said this was done even though Mallya was allegedly the actual beneficial owner of each front entity. He “committed fraud by engaging in the purchase and sale of securities of Herbertson/United Spirits in a fraudulent and deceptive manner with intent to detriment and deceive investors.” SEBI's investigation found that between January 2006 and December 2008, Mallya had made a profit of about $5.7 million through these fraudulent transactions.
As per SEBI's FII regulations, only individuals and entities resident outside India can invest in the Indian securities market through this route. The SEBI report said that from the scheme devised by Mallya, “it is clearly established that (he) had misused the FII mechanism/route to invest his surplus funds kept abroad and did not inform the investors of these companies in India about the same.”
SEBI's investigation found that Mallya had misused the foreign institutional investment (FII) route to trade in the domestic market by concealing his identity in the name of various foreign registered entities in whose names bank accounts were opened with UBS. SEBI said this was done even though Mallya was allegedly the actual beneficial owner of each front entity. He “committed fraud by engaging in the purchase and sale of securities of Herbertson/United Spirits in a fraudulent and deceptive manner with intent to detriment and deceive investors.” SEBI's investigation found that between January 2006 and December 2008, Mallya had made a profit of about $5.7 million through these fraudulent transactions.
As per SEBI's FII regulations, only individuals and entities resident outside India can invest in the Indian securities market through this route. The SEBI report said that from the scheme devised by Mallya, “it is clearly established that (he) had misused the FII mechanism/route to invest his surplus funds kept abroad and did not inform the investors of these companies in India about the same.”