Sebi orders Mishtann Foods to bring back nearly Rs 100 crore misappropriated funds
Capital markets regulator Sebi has directed Mishtann Foods to bring back nearly Rs 100 crore, an amount the company allegedly misappropriated through dubious transactions with related parties.
The regulator, in its extensive investigation, found that the company has transferred the fund among promoters, directors, and their relatives under the guise of legitimate trade activities. The deadline for retrieving the money will be within 45 days from the order.
Further, Sebi has barred key individuals and entities linked to the company from trading on the stock market for two years.
The interim order came after an investigation into allegations of fraudulent activities spanning several years. The regulator said Mishtann Foods engaged in circular trading with fictitious buyers and suppliers, many of which were shell entities controlled by the company’s directors and their associates.
«These transactions inflated the company’s financial performance on paper, misleading investors and regulators,» Sebi said in its order.
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