Hindustan Times ST (Mumbai) - Live
SEBI restrains bizman Nusli Wadia, sons from share market for two years
MUMBAI: The Securities and Exchange Board of India on Friday restrained industrialist Nusli Wadia, his sons Ness Wadia and Jehangir Wadia, and the company promoted by them -- Bombay Dyeing and Manufacturing Company Limited (BDMCL) -- from accessing the securities market and from buying, selling or otherwise dealing in securities in any manner for two years.
SEBI’s whole time member Anant Barua has also imposed penalties of ₹5 crore on Jehangir Wadia, ₹4 crore each on BDMCL and Nusli Wadia, and ₹2 crore on Ness Wadia for deliberate misrepresentation of financial statements of BDMCL between 2011-12 and 2017-18.
“I note that because of the misrepresentation of financial statements of BDMCL, the revenues and profit of BDMCL were inflated by ₹ 2,492.94 crores and ₹1,302.20 crores, respectively, from FY 2011-12 to FY 2017-18,” Barua said in the order. The SEBI had launched an investigation after receiving complaints that BDMCL was using one Scal Services Limited to artificially inflate its sales and profit and accordingly misrepresented the financial statements. Based on the complaints, the market regulator had issued notices to BDMCL and its promoters -- chairman Nusli Wadia, his son and managing director Ness, another son and non-executive director Jehangir, and also Scal Services and its directors. After hearing them, the board found substance in the complaints and on
Friday passed the order also imposing restrictions on Scal Services and its then directors; it also imposed a penalty of ₹1 crore on the company and of various amounts on its directors.
Scal Services, which according to the notices issued by SEBI, was indirectly controlled by Wadias, was eventually merged in BDMCL in July 2018.