Sebi's Biggest Action: Seeks Rs 706 Cr Plus 12% Compound Interest From Binny
Binny is involved in the business of trading textiles and engineering products
Sebi announced its biggest action against Binny asking the company to bring back Rs 703 crores plus 12 per cent compound interest in just 3 months. It is the biggest action by Sebi since it imposed Rs 1000 crore fine on the National Stock Exchange (NSE) in the Co-location scam. This apart, SEBI has imposed a fine of Rs Rs 27.5 crore against the company board of directors. After a forensic audit, Sebi had observed that funds were diverted by the company. It has also imposed a ban on raising money from the market and functioning for 3 years. Company will be challenging the Sebi order in SAT, sources said.
Binny is involved in the business of trading textiles and engineering products.
Allegations of misappropriation of funds
This action was taken by Sebi on the charges of misappropriation of funds and incorrect showing of financial accounts. An order has been given to bring back the amount of Rs 706 crore to the company within 3 months.
