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Sebi bars Eros Intl from market, CEO from holding Board positions until further orders over diversion of funds

Sebi bars Eros Intl from market, CEO from holding Board positions until further orders over diversion of funds

Sebi has also barred Vice Chairman and Managing Director Sunil Arjan Lulla from holding any directorial position in any listed company, including Eros International.

Business Today Desk
Business Today Desk
  • Updated Jun 22, 2023 7:28 PM IST
Sebi bars Eros Intl from market, CEO from holding Board positions until further orders over diversion of funds

The Securities and Exchange Board of India (Sebi) on Thursday barred Eros International Media and CEO Pradeep Kumar Dwivedi from the securities market until further notice for allegedly breaching trade practice regulations. The market regulator has also barred Vice Chairman and Managing Director Sunil Arjan Lulla from holding any directorial position in any listed company, including Eros International.

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Sebi has restrained Dwivedi from holding any directorial position in any listed company other than Eros International. "Noticees 1 to 5 are restrained from buying, selling or dealing in securities, either directly or indirectly, in any manner whatsoever until further orders," the regulator said in its interim order.

"If the said Noticees have any open position in any exchange-traded derivative contracts, as on the date of the order, they can close out /square off such open positions within 3 months from the date of order or at the expiry of such contracts, whichever is earlier."

In the financial results disclosed by Eros for FY 2019-20, impairment provided by the company on 'Content  Advances' and 'Film  Rights' amounted to Rs 1,553.52 crore.  In the same year,  Eros also wrote off trade receivables amounting to Rs 519.98  crore. Pursuant to this disclosure, National Stock Exchange (NSE) examined the financial statements of the company and forwarded a preliminary examination report to Sebi.

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It was noted in the report that revenue from operations, trade receivables, and loans given by Eros mainly comprised related party transactions, and the same had increased substantially in FY 2019-20. The preliminary report observed that prima-facie these transactions indicated that the company was engaging in financial misreporting/siphoning/diversion of funds.

Published on: Jun 22, 2023 7:21 PM IST
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