Sebi bars Vijay Mallya, six others from securities market

The Securities and Exchange Board of India (Sebi) on Wednesday barred Vijay Mallya and six others from the securities market in a case related to alleged fund diversions from United Spirits Limited Sebi’s order also comes close on the heels of CBI naming Mallya, Kingfisher Airlines and nine others, in the charge sheet related to the 2015 loan default case. In a 32-page order, Sebi said it has restrained Mallya and six others from the securities market and also from “buying, selling or otherwise dealing in securities in any manner whatsoever, either directly or indirectly” till further directions. The six others are Ashok Capoor, P A Murali, Sowmiyanarayanan, S N Prasad, Paramjit Singh Gill and Ainapur S R. Former United Spirits’ official Ashok Capoor have been restrained from “holding position as directors or key managerial persons (KMPs) of any listed company”. Sebi has been looking into the matter pertaining to alleged fund diversions and improper transactions at United Spirits Limited (USL). Mallya who initially refused to quit resigned as director and chairman of USL following a settlement in March 2016. Sebi Whole Time Member S Raman said in the order that the alleged prima facie violations observed in the case are serious and have larger implications on the safety and integrity of the securities market. “Investors might have based their investment decisions on the manipulated books of accounts prepared and presented by these persons. It would therefore not be in the interest of the securities market and the interest of investors to allow persons of such doubtful demeanour to continue to act as KMPs in the company or in other listed companies or allow them to deal in the securities market,” he said. According to him, pending investigations in the matter, effective preventive and remedial actions needs to be taken. Reacting to the Sebi order Mallya on Wednesday said “I am surprised by these media reports. Neither have I had any communication with Sebi nor have I ever been afforded a hearing before this purported action has been taken. I have always strongly denied all allegations made by USL”.