Bombay Dyeing in SAT against Sebi | The Financial Express

Bombay Dyeing in SAT against Sebi

Challenges regulator’s order barring access to capital markets

Bombay Dyeing in SAT against Sebi
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Bombay Dyeing & Manufacturing Company has moved the Securities Appellate Tribunal (SAT) against the Securities and Exchange Board of India’s (Sebi) order which barred the company and its promoters, Nusli Wadia and sons, Jehangir and Ness, from accessing the capital markets for upto two years.

“We have been informed that the company has filed an appeal before the SAT against the Sebi order,” the independent auditors to the company said in a report.

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The auditors also said that there would be no impact in the unaudited standalone financial results of the company, even though its conclusion is not qualified in this matter.

Earlier in October, market regulator Sebi banned Bombay Dyeing and promoters for alleged misrepresentation of financial statements and also imposed a penalty of Rs 15.75 crore on eight individuals and two entities. The market regulator also directed them to pay the fine within 45 days.

Bombay Dyeing promoters and Wadia’s sons, Ness and Jehangir, Scal Services (a Wadia Group company) and its former directors D S Gagrat, N H Datanwala, Shailesh Karnik, R Chandrasekharan and Durgesh Mehta were penalised in the case. While the ban for Bombay Dyeing, Wadia and his sons was for two years, the same for Scal and its then directors was one year.

Sebi levied a fine of Rs 2.25 crore on Bombay Dyeing, Rs 4 crore on Nusli Wadia, Rs 5 crore on Jehangir, Rs 2 crore on Ness, Rs 50 lakh on Mehta, Rs 1 crore on Scal and Rs 25 lakh each on the then directors of Scal.

Sebi, which had conducted a detailed investigation into the company’s affairs for FY11-12 to FY18-19, found alleged “misrepresentations” of financial statements.

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In its order, Sebi had also said that the company had allegedly indulged in dubious real estate transactions with its associate entity Scal Services.

The company said it was of the view that all transactions were entirely legitimate and in compliance with law, and it will be exercising its statutory right to appeal this order.

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First published on: 08-11-2022 at 01:15 IST