SEBI takes big action against Vijay Mallya, bans him from stock market for 3 years, securities will be frozen

Highlights

Vijay Mallya was declared a fugitive in 2019. Vijay Mallya is now living in Britain. From where the Indian government is trying to bring him back to the country.

New Delhi. The Securities and Exchange Board of India (SEBI) has banned fugitive businessman Vijay Mallya from the Indian securities market for 3 years. Mallya will no longer be able to make any transactions in the market for 3 years. SEBI has ordered the freezing of all Mallya’s security holdings, including mutual fund units. Earlier, in an order dated June 1, 2018, SEBI had barred Mallya from entering the securities market for three years. This action was taken for misusing USL’s money and improper transactions.

SEBI’s order regarding Vijay Mallya has come into effect with immediate effect. SEBI was investigating whether Mallya was indirectly involved in the trading of his shares or not. SEBI’s Chief General Manager Anita Anup wrote that, after considering the evidence, it was revealed that Mallya not only violated the FII rules, but also bought and sold securities in the listed companies of his group in India in an illegal manner. This was against the interests of investors and its purpose was to deceive the market players.

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Money spent hiding real identity
SEBI said that Mallya, by concealing his identity, made investments through an FPI company named Matterhorn Ventures, which was against the interest of the shareholders of Indian companies. According to SEBI’s order, this FPI company was used to transact in the shares of liquor companies like Herbertsons and United Spirits (USL). SEBI found that Matterhorn Ventures held 9.98 per cent shares of Herbertsons, which were actually of the promoter category and were entirely funded by Mallya.

Open bank accounts in different names
SEBI found in its investigation that Vijay Mallya had opened several accounts in different names (Bayside, Suncoast and Birchwood) in UBS Bank for investing in shares of Herbertson and United Spirits Limited (USL), of which he himself was the beneficiary. These three accounts transferred $6.15 million which went to Vijay Mallya.

Tags: Business news, Vijay Mallya

FIRST PUBLISHED : July 27, 2024, 07:17 IST