Informist, Monday, Mar 20, 2023
MUMBAI – The Securities and Exchange Board of India today issued a show-cause notice to chemicals company Seya Industries Ltd and its officials to respond to charges of siphoning off 812.6 mln rupees to promoter group companies and related parties. The company, its promoter and chairman-cum-managing director Ashok Rajani, chief financial officer Amrit Rajani, and two executive directors were also directed to respond to charges of non-disclosure of critical material events and manipulation of the company's books of accounts.
The show-cause notice was combined with an interim order in which the securities market regulator directed the company to disclose all undisclosed information, including that of material events, to stock exchanges within 15 days. It also directed the four officials and directors to desist from selling or diluting their shareholding in the company directly or indirectly till further orders.
SEBI and stock exchanges initiated a probe in the company's officials after complainant SC India Fund Manager wrote to the market regulator, alleging that the company had made private placement of non-convertible debentures and compulsorily convertible preference shares on the basis of accounts manipulation whereby sales and profits were artificially created through a circuitous web of transactions. The complainant also alleged that an interim arbitration order directing the company to pay 720 mln rupees with interest was a material event, but was not disclosed to stock exchanges.
The regulatory probe also revealed several other potential breaches of listing regulations. In its annual reports for 2019-20 (Apr-Mar), 2020-21, and 2021-22, the company had provided for interest on loans. The non-provisioning of interest ranged from 369 mln rupees to 717 mln rupees during the three years.
Seya Industries manufactures chlorinated and nitrated benzene based products. The company was listed on BSE in 1993-94 and on the National Stock Exchange in 2019-20.
Today, shares of Seya Industries ended 1.2% higher at 28.75 rupees on the NSE. End
Reported by Rajesh Gajra
Edited by Avishek Dutta
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
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Informist, Monday, Mar 20, 2023
MUMBAI – The Securities and Exchange Board of India today issued a show-cause notice to chemicals company Seya Industries Ltd and its officials to respond to charges of siphoning off 812.6 mln rupees to promoter group companies and related parties. The company, its promoter and chairman-cum-managing director Ashok Rajani, chief financial officer Amrit Rajani, and two executive directors were also directed to respond to charges of non-disclosure of critical material events and manipulation of the company's books of accounts.
The show-cause notice was combined with an interim order in which the securities market regulator directed the company to disclose all undisclosed information, including that of material events, to stock exchanges within 15 days. It also directed the four officials and directors to desist from selling or diluting their shareholding in the company directly or indirectly till further orders.
SEBI and stock exchanges initiated a probe in the company's officials after complainant SC India Fund Manager wrote to the market regulator, alleging that the company had made private placement of non-convertible debentures and compulsorily convertible preference shares on the basis of accounts manipulation whereby sales and profits were artificially created through a circuitous web of transactions. The complainant also alleged that an interim arbitration order directing the company to pay 720 mln rupees with interest was a material event, but was not disclosed to stock exchanges.
The regulatory probe also revealed several other potential breaches of listing regulations. In its annual reports for 2019-20 (Apr-Mar), 2020-21, and 2021-22, the company had provided for interest on loans. The non-provisioning of interest ranged from 369 mln rupees to 717 mln rupees during the three years.
Seya Industries manufactures chlorinated and nitrated benzene based products. The company was listed on BSE in 1993-94 and on the National Stock Exchange in 2019-20.
Today, shares of Seya Industries ended 1.2% higher at 28.75 rupees on the NSE. End
Reported by Rajesh Gajra
Edited by Avishek Dutta
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2023. All rights reserved.
