SAT stays SEBI’s order to ban Omaxe, others from securities market 

The logo of Securities and Exchange Board of India (SEBI). | Photo Credit: Reuters

The Securities Appellate Tribunal (SAT) has stayed a SEBI bid that barred realty steadfast Omaxe, its Chairman Rohtas Goel, Managing Director Mohit Goel and others from the securities marketplace for 2 years for misrepresentation successful the company's fiscal statements.

The latest bid came aft Omaxe and others challenged the bid passed by the Securities and Exchange Board of India (SEBI) connected July 30.

In its ruling connected October 1, the appellate tribunal said, "direction astatine paragraphs No. 41(1) and (2) shall stay stayed, taxable to deposit of punishment magnitude by the appellant wrong 4 weeks".

Paragraphs No 41(1) and (2) pertain to securities marketplace prohibition and prohibition from holding immoderate presumption arsenic cardinal managerial unit of immoderate different listed institution imposed connected individuals by SEBI.

Commenting connected the development, Omaxe Managing Director Mohit Goel said, "With this stay, the restrictions connected our information successful the securities marketplace person been lifted, enabling america to rise superior and proceed concern operations without disruption."

"At Omaxe, we stay committed to upholding transparency and maintaining the spot of our investors and stakeholders. We volition proceed to afloat cooperate with the authorities and absorption connected our ongoing projects, ensuring sustained worth instauration and growth," Mr. Goel added.

SEBI, successful its ruling, restrained Omaxe, Rohtas Goel, Mohit Goel and 3 others - Sudhangshu S Biswal, Arun Kumar Pandey, and Vimal Gupta - from the securities markets for 2 years.

Additionally, these 5 persons were "prohibited from holding immoderate presumption arsenic Director oregon Key Managerial Person of immoderate different listed institution for a play of 2 years".

Further, a punishment of ₹47 lakh was imposed connected 16 entities, including these six. The penalties ranged from ₹1-7 lakh.

In its order, SEBI said that these entities person "acted successful performance successful bid to execute a fraudulent strategy which they tried to represent arsenic mean transactions for the payment of the institution though it was experiencing loss, portion besides trying to represent these arsenic simply lending activities, thereby trying to support the terms of the scrip of Omaxe for a play of 3 years".

The institution misrepresented the fiscal statements during 2018-19, 2019-20 and 2020-21 done its assorted items -- revenue, debtors, advances, and expenses.

"By the enactment of large-scale misrepresentation/misstatement/manipulation successful fiscal statements by Omaxe, the scrip terms was straight oregon indirectly manipulated to support the worth of the collateral kept by the promoter against the loan," SEBI had noted.

Furthermore, the fraud was ne'er disclosed to the shareholders of Omaxe, which misled them to stay invested successful its shares oregon woody successful its securities. Also, misrepresentation of the books and accounts of Omaxe misled the investors successful the securities market, it had added.

Published - October 07, 2024 10:44 p.m. IST