Latest News | Sebi Confirms Securities Markets Ban on SecUR Credentials, MD
Get latest articles and stories on Latest News at LatestLY. Markets regulator Sebi on Monday said SecUR Credentials and its Managing Director Rahul Belwalkar will remain barred from the securities markets in a case pertaining to alleged fund diversion.
New Delhi, Sep 9 (PTI) Markets regulator Sebi on Monday said SecUR Credentials and its Managing Director Rahul Belwalkar will remain barred from the securities markets in a case pertaining to alleged fund diversion.
SecUR Credentials is a BSE and NSE-listed entity. It had migrated from the SME platform to the mainboard in October 2022.
In June this year, Sebi passed an interim order and barred SecUR Credentials and MD Belwalkar from the securities markets.
The regulator had also restrained Belwalkar from acting as a director of any listed company or any Sebi-registered intermediary.
Pursuant to the passing of the interim order, Sebi noted that sufficient opportunities, in compliance with the principles of natural justice, have been provided to SecUR Credentials and Belwalkar to present their case, however, they have failed to avail the same.
Further, the regulator observed that there is no ground for interfering with the directions passed in the interim order and they are liable to be confirmed.
"I, hereby confirm the directions issued vide the interim order dated June 13, 2024," Sebi's whole-time member Ashwani Bhatia said in the confirmatory order.
The Securities and Exchange Board of India (Sebi) conducted a suo moto examination into the affairs of SecUR to ascertain whether there were any violations of the provisions of Prohibition of Fraudulent and Unfair Trade Practices and disclosure rules.
The period of examination was from April 2020 to March 2024.
In its interim order, Sebi noted the prima facie findings concerning the diversion of SecUR's funds to the promoter, directors, and other individuals /entities by its MD, which amounted to a violation of the Prohibition of Fraudulent and Unfair Trade Practices norms.
In addition, the related party transactions were carried out by SecUR with its MD without any requisite shareholder approval in violation of the disclosure norms.
Also, Belwalkar was noted to have transferred funds to the extent of Rs 8.23 crore to Varanium Cloud MD Harshwardhan Sabale, the order said.
(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)