Mumbai’s Man Industries (India) Ltd saw its shares plunge more than 16 percent in early trading on Tuesday, hit hard by a tough move from India’s market regulator, SEBI. The Securities and Exchange Board of India slapped a two-year ban on the company and three top executives from dealing in the securities market. On top of that, SEBI fined each executive Rs 25 lakh for what it called misleading financial reports.
The executives facing the heat are Chairman Ramesh Mansukhani, Executive Director Nikhil Mansukhani, and current CFO Ashok Gupta, who was previously an executive director. SEBI’s order points out that the company’s financial statements from fiscal years 2016 to 2021 were intentionally fudged. This left investors in the dark about the real state of the business, according to the regulator.
At the heart of the issue: Man Industries stopped including its wholly-owned subsidiary, Man Structural Pvt. Ltd. (MSPL), in group financials after FY15 for no good reason. That move hid losses and debts at the group level while boosting the parent company’s profits on paper.
The company fired back, saying the penalties are “minimal” compared to its overall operations and won’t disrupt daily business. Man Industries plans to review the SEBI order closely and fight it through legal channels if needed.
By 11:46 a.m., Man Industries share price stood at Rs 358.30 on the National Stock Exchange (NSE), marking an 11.80 percent drop from the previous close. The stock has tumbled over 19 percent in the last five trading sessions and more than 7 percent over the past month. Even with the recent slide, it’s still up nearly 10 percent since the start of the year. It opened at Rs 356.20, a sharp fall from Monday’s close of Rs 406.70.
Meanwhile, India’s benchmark stock indices flattened out after a positive start to the day. Investors are eyeing the Reserve Bank of India’s (RBI) upcoming monetary policy decision. Around 11:57 a.m., the Sensex hovered at 80,310.56, down 54.38 points or 0.07 percent. The Nifty traded at 24,631.60, off by just 3.30 points or 0.01 percent.
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