United Breweries (UBL) on Friday said it has sought legal advice on the next course of action after securities market regulator restrained its Chairman Vijay Mallya from holding the position as "directors or key managerial persons" of any listed company.
United Breweries (UBL) on Friday said it has sought legal advice on the next course of action after securities market regulator restrained its Chairman Vijay Mallya from holding the position as “directors or key managerial persons” of any listed company.
On Wednesday, market regulator Securities and Exchange Board of India (Sebi) had also barred Mallya and six officials of United Spirits (USL) from trading in the securities market with immediate effect.
In a regulatory filing to the BSE, UBL stated: “The company is in the process of taking legal advice on the next course of action that it has to take as a consequence of the order and shall act suitably.”
“SEBI’s order dated 25th January 2017 is a direction to Dr.Vijay Mallya and others in their respective capacities. Compliance of the order as may be required in so far as it concerns United Breweries has to be carried out by Dr. Mallya himself.”
The Sebi order on Wednesday came on account of matters relating to improper USL fund diversions. According to the PWC-UK report, Rs 655.55 crore and according to the E&Y report, Rs 1,225.24 crore of USL funds were wrongly diverted.
Noting that individuals holding key managerial positions in listed companies have to follow high standards of integrity and ensure good governance, the regulator had said that the alleged violations observed in this case were serious and had larger implications on the safety and integrity of the securities market.
On his part, Mallya had expressed surprise stating that he had not received any intimation from Sebi or given a chance to state his case.