India's regulator bars Bombay Dyeing and others from securities market

Bombay Dyeing And Mfg

22/10/2022 12:09

MUMBAI, Oct 22 (Reuters) - India's Bombay Dyeing and
Manufacturing Company Ltd  BDYN.NS  has been barred by the
country's capital market regulator from the securities markets
for two years.
  The company, which is part of the Wadia Group and is engaged
in the business of real estate, polyester and textiles, is among
10 entities facing penalties for allegedly misrepresenting
financial statements.
    The Securities and Exchange Board of India (SEBI) issued a
statement late Friday barring Bombay Dyeing and its "promoters"
(owners) - Nusli N Wadia and his sons, Ness and Jehangir - from
the securities markets for up to two years.
    Also named and penalised are Scal Services Ltd, a Wadia
Group company, its former directors D S Gagrat, N H Datanwala,
Shailesh Karnik and R Chandrasekharan, and Durgesh Mehta, who
was joint managing director and chief financial officer of
Bombay Dyeing.  
    The Wadia Group is one of the oldest conglomerates in India
with presence in several diversified industries, including
consumer goods, real estate, civil aviation, textiles, chemicals
and food processing.
    Four companies in the Wadia Group are listed on Indian Stock
Exchanges, including Bombay Dyeing.
    SEBI said it imposed fines totalling 157.5 million rupees
($1.91 million) on the named parties for "being involved in a
fraudulent scheme of misrepresenting the company's financial
statements."
    The regulator said it had conducted a detailed investigation
into the affairs of Bombay Dyeing from 2011-2012 and 2018-2019.
    The Wadia Group has been contacted for comment. 
 (Reporting by Rupam Jain; Editing by Mike Harrison)
 ((Rupam.Jain@thomsonreuters.com; +91 7042133028;))