Sebi Cracks Down on Seacoast for Financial Fraud and Misrepresentation
Sebi has barred Seacoast Shipping Services and its promoters from the securities market for five years, compelling them to return illegal gains of nearly Rs 48 crore. The company misrepresented financial statements and diverted funds, misleading investors and violating trade practices and disclosure regulations.
- Country:
- India
The Securities and Exchange Board of India (Sebi) has banned Seacoast Shipping Services Ltd and its promoters from participating in the securities market for a duration of five years. This comes alongside an order to return illicit gains totaling nearly Rs 48 crore, due to allegations of financial misrepresentation and fund diversion.
Sebi's comprehensive 187-page order indicated that Seacoast's financial disclosures from fiscal years 2021 through 2023 and part of 2023 were fabricated, providing investors with a misleading view of the company's financial health. Furthermore, fraudulent allocation of equity shares to promoters Manish and Sameer Shah was confirmed, contributing to deceptive practices in the market.
Seacoast's share capital saw an exponential increase due to strategic corporate actions, enabling promoters to offload shares to unsuspecting investors. The unlawful gains, particularly Rs 47.89 crore accrued by Manish Shah, are to be returned with interest. This regulatory action follows a BSE probe revealing fictitious transactions, and further bolsters transparency and compliance within the sector.
(With inputs from agencies.)
Google News