India's regulator bars Bombay Dyeing and others from securities market

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India's Bombay Dyeing and Manufacturing Company Ltd has been barred by the country's capital market regulator from the securities markets for two years.

A woman walks past the logo of the Securities and Exchange Board of India , at its headquarters in Mumbai, India, May 27, 2022. REUTERS/Francis Mascarenhashas been barred by the country's capital market regulator from the securities markets for two years.

The company, which is part of the Wadia Group and is engaged in the business of real estate, polyester and textiles, is among 10 entities facing penalties for allegedly misrepresenting financial statements. The Securities and Exchange Board of India issued a statement late Friday barring Bombay Dyeing and its "promoters" - Nusli N Wadia and his sons, Ness and Jehangir - from the securities markets for up to two years.Also named and penalised are Scal Services Ltd, a Wadia Group company, its former directors D S Gagrat, N H Datanwala, Shailesh Karnik and R Chandrasekharan, and Durgesh Mehta, who was joint managing director and chief financial officer of Bombay Dyeing.

The Wadia Group is one of the oldest conglomerates in India with presence in several diversified industries, including consumer goods, real estate, civil aviation, textiles, chemicals and food processing.SEBI said it imposed fines totalling 157.5 million rupees on the named parties for "being involved in a fraudulent scheme of misrepresenting the company's financial statements."

The regulator said it had conducted a detailed investigation into the affairs of Bombay Dyeing from 2011-2012 and 2018-2019.Register now for FREE unlimited access to Reuters.com

 

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