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Informist, Tuesday, Sept. 30, 2025

 

MUMBAI – The Securities and Exchange Board of India has banned Man Industries (India) Ltd., the company's chairman, and managing director, from the securities market for two years. In its final order, SEBI said the company gave out loans to a subsidiary and a group company without required approvals, failed to recognise interest income from loans given to subsidiary, and did not disclose some loans given to related parties, among other irregularities.

 

SEBI has banned the company's Chairman Ramesh Mansukhani and Managing Director Nikhil Mansukhani from the securities market. It has also banned Ashok Gupta, who retired in 2024 after serving as chief financial officer, from the market. The regulator also directed that the existing securities holdings, including mutual fund units, of the company and the executives be frozen for two years. They can close any open positions in the derivatives market.

 

SEBI has also fined the company and its executives. It handed a penalty of INR 2.5 million each to the company, chairman, managing director, and former CFO, for unfair trade practices.

 

The regulator's investigation found the company, with the involvement of executives, made several related party transactions without getting proper approvals. Its executives also approved financial results knowing that key information was either wrong or missing.

 

"I find that the financial statements of MIIL (Man Industries) for the financial years 2015–16 to 2020–21 were deliberately misstated and that the misrepresentations, omissions, and concealments contained therein were themselves the scheme or artifice by which investors were deprived of the true financial picture of MIIL," N. Murugan, chief general manager at SEBI, said in the order.

 

Man Industries' wholly-owned subsidiary Merino Shelters Pvt. Ltd. was excluded from consolidated financials to hide the group-level losses, the order said. The executives also entered into transactions between companies to manipulate the balance sheet. "...at successive year-ends, circular flows of funds were executed on 31 March, whereby repayments moved from MRL (Man Realty) to MSPL (Merino Shelters) to MIIL, thereby reducing receivable balances as on the reporting date, only for the same funds to be readvanced in April," the order said.

 

SEBI said Man Industries disclosed related party transactions only on net basis and hid gross inflows and outflows "giving investors the false impression of limited exposures to related parties". The company also gave out a loan of INR 482.50 million to a related entity, Limitless Contracting, without the required approval. Further, the company did not correct it despite auditors flagging the issue. End

 

Reported by Anshul Choudhary

Edited by Ashish Shirke

 

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