SEBI bars fugitive businessman Vijay Mallya from trading in securities market
Mumbai: The Securities and Exchange Board of India (SEBI) has banned fugitive businessman Vijay Mallya from accessing the securities market for three years, media resports said.
The erstwhile liquor magnate has also been prohibited from linking with any company listed in the Indian stock market for three years. The market regulator also directed freezing of all securities holdings, including mutual fund units.
Mallya, using a foreign institutional investor (FII) entity called Matterhorn Ventures, has indirectly traded in stocks of his group companies in India, thereby hiding the true nature of his investments in the securities market.
Investments via the FII route are intended only for entities other than non-resident Indians.
“…the shareholding of Matterhorn Ventures of 9.98 per cent shares of Herbertsons actually belonged to the promoter category being totally funded by the notice,” it observed.
Through a series of mergers and acquisitions, Herbertsons evolved into United Spirits Limited (USL), which is now owned by the British multinational company Diageo.
“Such acts of the noticee are not only fraudulent and deceptive but are a threat to the integrity of the securities market,” SEBI added.
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