SEBI Bars Vijay Mallya from Securities Markets for Three Years

SEBI has prohibited fugitive businessman Vijay Mallya from the securities markets for three years due to fraudulent trading activities. Mallya is also barred from associating with any listed company during this period, with his existing securities holdings frozen. SEBI's investigation revealed abuse of Foreign Institutional Investment mechanisms.

The Securities and Exchange Board of India (SEBI) has imposed a three-year ban on fugitive businessman Vijay Mallya, effective immediately, prohibiting him from accessing the securities market. The regulatory body found Mallya guilty of masking his identity and engaging in trading activities within the Indian securities markets.

According to SEBI's order released on Friday, Mallya is barred from buying, selling, or dealing in securities directly or indirectly and from associating with any listed or proposed-to-be-listed company for a three-year period. Additionally, Mallya's current holdings, including mutual funds, shall remain frozen, the order stated.

The 37-page order detailed that Mallya abused the Foreign Institutional Investment mechanism to invest funds held abroad without proper disclosure to Indian investors. SEBI’s investigation, based on findings from the Financial Conduct Authority, revealed Mallya’s use of the sub-account Matterhorn Ventures to trade shares of his group entities, Herbertsons Limited and United Spirits Limited, deceptively.

SEBI's inquiry also noted that Mallya failed to respond to the allegations presented in the show cause notice during three granted hearing opportunities. The businessman, accused in a massive bank loan default case of over Rs 9,000 crore, remains in the UK. (ANI)