MUMBAI: Markets regulator Sebi has banned fugitive billionaire Vijay Mallya for 3 years for illegally routing funds by way of layered transactions utilizing overseas entities and banks to jack up costs of his personal corporations and likewise revenue from the identical. All his holdings in shares and mutual funds in India have additionally been frozen whereas he has been barred from associating with any listed Indian firm as a director.
Sebi investigations discovered that Mallya had abused the overseas institutional funding (FII) path to commerce within the home market by concealing his identification within the names of varied abroad registered entities, in whose names the financial institution accounts had been opened with UBS.This was completed despite the fact that Mallya allegedly was the precise useful proprietor of every of the entrance entities “in a fraudulent method by using manipulative and misleading artifice by indulging in buy and sale of securities of Herbertsons /United Spirits detrimental to the traders and with an intent to defraud them,” Sebi mentioned. The Sebi investigations discovered that between January 2006 and December 2008, Mallya had made positive aspects of near $5.7 million by way of these fraudulent transactions.
In line with Sebi’s FII laws, solely individuals and entities who’re resident outdoors India can have an publicity within the Indian securities market by way of this route. From the scheme devised by Mallya, “it’s clearly established that (he had), by the use of a design, abused the FII mechanism/route for investing his surplus funds stored overseas and had not revealed the identical to the traders of those corporations in India,” Sebi report famous.
Sebi investigations discovered that Mallya had abused the overseas institutional funding (FII) path to commerce within the home market by concealing his identification within the names of varied abroad registered entities, in whose names the financial institution accounts had been opened with UBS.This was completed despite the fact that Mallya allegedly was the precise useful proprietor of every of the entrance entities “in a fraudulent method by using manipulative and misleading artifice by indulging in buy and sale of securities of Herbertsons /United Spirits detrimental to the traders and with an intent to defraud them,” Sebi mentioned. The Sebi investigations discovered that between January 2006 and December 2008, Mallya had made positive aspects of near $5.7 million by way of these fraudulent transactions.
In line with Sebi’s FII laws, solely individuals and entities who’re resident outdoors India can have an publicity within the Indian securities market by way of this route. From the scheme devised by Mallya, “it’s clearly established that (he had), by the use of a design, abused the FII mechanism/route for investing his surplus funds stored overseas and had not revealed the identical to the traders of those corporations in India,” Sebi report famous.
