SAT Grants Temporary Relief to Man Industries Amid Sebi Ban

The Securities Appellate Tribunal (SAT) has temporarily stayed a Sebi order barring Man Industries and three executives from securities markets. The stay requires a 50% penalty deposit. Sebi had penalized the company for misstating financials from 2015 to 2021. Crisil reaffirmed Man Industries' credit ratings despite the issue.

The Securities Appellate Tribunal (SAT) provided temporary relief to Man Industries (India) Ltd by granting a stay on an order issued by the Securities and Exchange Board of India (Sebi) that banned the company and three of its senior executives from accessing the capital markets.

This provisional stay, which requires the company to deposit half of the penalty amount set by Sebi, was announced by Man Industries on Tuesday. The original order, dated September 29, alleged financial misstatements by the company over several fiscal years, resulting in a Rs 25 lakh fine for each penalized executive, including Chairman Ramesh Mansukhani and others.

Meanwhile, credit rating agency Crisil reaffirmed its ratings for Man Industries, noting limited potential financial impacts from the ban due to the firm's strong liquidity and operating metrics. Despite the ban and ordered forensic audit, the company maintains stable credit standings with ratings of Crisil A/Stable for long term and Crisil A1 for short term.

(With inputs from agencies.)