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

By Renu Mishra 
Updated Date

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 transact in the market in any way for 3 years. SEBI has ordered the freezing of all of 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.

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This action was taken for misuse of 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. SEBI’s Chief General Manager Anita Anup wrote that, after looking at 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 incorrect manner.

This was against the interests of investors and was aimed at deceiving market players.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 in the promoter category and were entirely funded by Mallya.

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 transact in the market in any way for 3 years. SEBI has ordered the freezing of all of 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 misuse of 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. SEBI’s Chief General Manager Anita Anup wrote that, after looking at 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 incorrect manner. This was against the interests of investors and was aimed at deceiving market players.

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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 in the promoter category and were entirely funded by Mallya.

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