Mumbai: Shares of Man Industries (India) Ltd. dropped nearly 16 percent on September 30, after the Securities and Exchange Board of India (SEBI) barred the company and three of its top executives from accessing the securities market for two years.
This action follows allegations of fund diversion, non-disclosure of financial links, and misrepresentation of related-party transactions.
SEBI’s investigation revealed that the company failed to consolidate its subsidiary Merino Shelters in its financial statements between FY2015 and FY2021, which distorted its true financial position. Additionally, the regulator found instances of round-tripping of funds to hide its liabilities and manipulate its financial appearance.
Who Is Banned and What’s the Penalty?
The ban applies to Man Industries, its Chairman Ramesh Mansukhani, Managing Director Nikhil Mansukhani, and former CFO Ashok Gupta. All are restricted from accessing or dealing in the securities markets for two years.
SEBI has also proposed a monetary penalty of Rs 25 lakh each on the company and the three executives.
Company Responds: No Business Impact Claimed
Despite the regulatory action, Man Industries stated that its core operations remain unaffected. In an exchange filing, the company clarified that it does not participate in securities market trading, and therefore, the restriction has no effect on its ongoing business.
The company also highlighted its strong order book of Rs 4,700 crore and said its business remains fully operational.
Why This Is a Warning Sign
This case is a clear signal from SEBI to other listed firms: poor governance, related-party lapses, or manipulation of books will attract strict action — even if the company’s day-to-day operations are stable.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Readers should consult financial experts before making any investment decisions based on regulatory developments.
