<p>Markets regulator Sebi has restrained Eskay K‘n’it India Ltd and its directors from accessing the securities markets and also slapped monetary fines on them for various market norm violations.</p>.<p>Sebi found that the financial statements of the firm for the investigation period contained misstatements and the same were not in line with the applicable accounting standards.</p>.<p>Sebi further noted non-disclosure of material information to exchanges.</p>.<p>The firm was obliged to disclose information related to investigation/filing of FIR by CBI pursuant to various complaints filed by various banks.</p>.<p>Among other violations, the firm also failed to furnish requisite information to the forensic auditor.</p>.<p>The regulator had passed an interim order in 2017 with directions against the firm and the officials and had also directed for appointment of an independent forensic auditor.</p>.<p>The violations have occurred over a period of three financial years.</p>.<p>Besides, Neha Nilesh Patil, Trivendra Shambhu Singh, Naresh Chandra Sharma, Manmohan Ahluwalia and Narayan Ghumatkar have been charged in their capacity as directors.</p>.<p>The firm has been barred from the securities market for a year while the directors have been restrained for six months to one year. In addition, the firm is facing a fine of Rs 30 lakh.</p>.<p>The directors have been levied penalties in the range of Rs 2 lakh to Rs 15 lakh each.</p>.<p>However, the directions against the firm will be given effect depending on the outcome of the resolution process since it is undergoing corporate insolvency resolution.</p>.<p>In a separate order, Sebi noted that Riddhi Siddhi Gluco Biols Ltd and some other entities, including senior officials of the firm, were part of a fraudulent scheme to show that the shares of the company were frequently traded to make the delisting offer successful at a fraudulently arrived price.</p>.<p>A proposal was submitted to BSE to provide an exit opportunity to public shareholders of the company by purchasing shares from public shareholders.</p>.<p>BSE granted in-principle approval for delisting of equity shares in February 2018 but in light of certain investors' complaints, the regulator advised the exchange to keep the delisting process on hold.</p>.<p>Thereafter, in a probe, Sebi discovered the fraudulent scheme and also found that the company was not in compliance with the minimum public shareholding (MPS) requirement from September 30, 2015 onwards.</p>.<p>Therefore, Sebi has directed the firm to comply with the MPS requirement and till then, the firm has been restrained from accessing the securities market.</p>.<p>Among other directions, the chairman and managing director Ganpatraj L Chowdhary and the whole time director Siddharth G Chowdhary shall remain barred from the markets till the expiry of two years from the date of the compliance of MPS requirement.</p>.<p>Sebi has also passed directions for barring access to securities market against 26 other entities.</p>
<p>Markets regulator Sebi has restrained Eskay K‘n’it India Ltd and its directors from accessing the securities markets and also slapped monetary fines on them for various market norm violations.</p>.<p>Sebi found that the financial statements of the firm for the investigation period contained misstatements and the same were not in line with the applicable accounting standards.</p>.<p>Sebi further noted non-disclosure of material information to exchanges.</p>.<p>The firm was obliged to disclose information related to investigation/filing of FIR by CBI pursuant to various complaints filed by various banks.</p>.<p>Among other violations, the firm also failed to furnish requisite information to the forensic auditor.</p>.<p>The regulator had passed an interim order in 2017 with directions against the firm and the officials and had also directed for appointment of an independent forensic auditor.</p>.<p>The violations have occurred over a period of three financial years.</p>.<p>Besides, Neha Nilesh Patil, Trivendra Shambhu Singh, Naresh Chandra Sharma, Manmohan Ahluwalia and Narayan Ghumatkar have been charged in their capacity as directors.</p>.<p>The firm has been barred from the securities market for a year while the directors have been restrained for six months to one year. In addition, the firm is facing a fine of Rs 30 lakh.</p>.<p>The directors have been levied penalties in the range of Rs 2 lakh to Rs 15 lakh each.</p>.<p>However, the directions against the firm will be given effect depending on the outcome of the resolution process since it is undergoing corporate insolvency resolution.</p>.<p>In a separate order, Sebi noted that Riddhi Siddhi Gluco Biols Ltd and some other entities, including senior officials of the firm, were part of a fraudulent scheme to show that the shares of the company were frequently traded to make the delisting offer successful at a fraudulently arrived price.</p>.<p>A proposal was submitted to BSE to provide an exit opportunity to public shareholders of the company by purchasing shares from public shareholders.</p>.<p>BSE granted in-principle approval for delisting of equity shares in February 2018 but in light of certain investors' complaints, the regulator advised the exchange to keep the delisting process on hold.</p>.<p>Thereafter, in a probe, Sebi discovered the fraudulent scheme and also found that the company was not in compliance with the minimum public shareholding (MPS) requirement from September 30, 2015 onwards.</p>.<p>Therefore, Sebi has directed the firm to comply with the MPS requirement and till then, the firm has been restrained from accessing the securities market.</p>.<p>Among other directions, the chairman and managing director Ganpatraj L Chowdhary and the whole time director Siddharth G Chowdhary shall remain barred from the markets till the expiry of two years from the date of the compliance of MPS requirement.</p>.<p>Sebi has also passed directions for barring access to securities market against 26 other entities.</p>