Sebi bans 4 entities for 3 yrs, imposes penalty of Rs 68L

New Delhi: Markets regulator Sebi has barred Manpasand Beverages Ltd (MBL) and its three top officials from the securities markets for three years and imposed a penalty totalling Rs68 lakh on them for manipulating and mis-stating the company’s financial statement. In its order, the regulator said that the financial statements of the company were manipulated and mis-stated for financial years 2018-19 and 2019-20.

Apart from Manpasand Beverages, those restrained by Sebi are -- the company’s promoter, chairman & managing director (CMD) Dhirendra Singh, promoter and executive director Abhishek Singh and chief financial officer (CFO) Paresh Thakkar. Also, these four entities have been fined Rs 17 lakh each, which needs to be paid within 45 days, Sebi said in its 55-page order passed on Tuesday. Additionally, Dhirendra Singh, Abhishek Singh and Paresh Thakkar have been prohibited from holding position of director or key managerial personnel in any listed public company or any intermediary registered with Sebi in any capacity for five years.

Further, the company’s former independent directors -- Milind Babar and Chirag Doshi -- were fined Rs2 lakh each and current independent directors --Nishish Mobar and Bharti Naik were fined Rs1 lakh each. Naik was non-executive director at the relevant time. After receiving complaints in September 2019 from Bipin Rathod, who was the chairman of the audit committee of MBL, Sebi conducted an investigation into the matter to ascertain any possible manipulation or misrepresentation in the books of accounts of MBL.

Also, Sebi appointed Chokshi & Chokshi LLP to conduct a forensic audit of the company’s financial statements for 2018-19 and 2019-20.