10 hrs ago
Sebi Bars Tarapur Transformers, Promoters Over Fund Diversion Case
Sebi is India’s securities-market regulator.
It investigated Tarapur Transformers and people and companies connected to it.
The investigation covered April 2018 through March 2023.
Sebi said the case involved money being diverted and made-up transactions in the company’s accounts.
As a result, nine entities were stopped from participating in the securities markets.
Rajendra Kumar Choudhary received a five-year ban and a Rs 30 lakh fine.
Ganesh Gangaram Madhari received a Rs 2 lakh fine.
Several other companies received three-year market bans.
Sebi barred nine entities, including Tarapur Transformers and its promoters, from securities markets for up to five years.
The case involved alleged diversion of funds and fictitious transactions in Tarapur Transformers’ books of accounts.
Promoter Rajendra Kumar Choudhary was fined Rs 30 lakh and barred from the markets for five years.
Ganesh Gangaram Madhari was fined Rs 2 lakh by the regulator.
Eight entities, including Choudhary Global, were barred from the securities market for three years.
- Who
- Sebi, Tarapur Transformers, its promoters, and other connected entities.
- What
- Sebi imposed market bans and fines in a case involving fund diversion and fictitious accounting transactions.
- Where
- The action concerns India’s securities markets.
- When
- The investigation covered April 1, 2018, to March 2023; the order was reported from New Delhi.
- Why
- Sebi acted following its investigation into Tarapur Transformers’ affairs and alleged fund diversion and fictitious transactions.
Key facts
- Regulator
- Securities and Exchange Board of India (Sebi)
- Company
- Tarapur Transformers Ltd
- Investigation period
- April 1, 2018, to March 2023
- Five-year ban
- Rajendra Kumar Choudhary and Tarapur Transformers were among those barred for up to five years
- Choudhary fine
- Rs 30 lakh
- Madhari fine
- Rs 2 lakh
- Three-year bans
- Choudhary Global, Veedhata Towers, Lorraine Finance, Rohit Steel Lamination, Deekay Iron and Steel, Kumudini Engineering, and Ashadeep Multitrade
Sources
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