The Securities and Exchange Board of India (SEBI) has barred ousted CG Power and Industrial Solutions chairman Gautam Thapar and three others from accessing the securities market until further orders.
"Gautam Thapar, VR Venkatesh, Madhav Acharya and B Hariharan are restrained from accessing the securities market and are further prohibited from buying, selling or otherwise dealing in securities in any manner whatsoever, either directly or indirectly, till further orders," the SEBI order read.
According to a notice released by the regulator, the actions of Gautam Thapar and others amounted to 'fraud' on public investors. The actions of Thapar and others have led to shareholders losing value, the order noted.
It also noted that CG Power’s probe report indicated ‘serious misstatement of accounts and fund diversion’. It has also directed BSE to appoint an independent auditor to audit CG Power’s books from FY16 to date.
CG Power & Industrial Solutions on August 29 said its board has sacked Gautam Thapar as its chairman with immediate effect after an investigation that unearthed a multi-crore financial scam in the firm.
On August 20, the company had stated that an investigation instituted by its board had found major governance and financial lapses including some assets being provided as collateral and the money from the loans siphoned off by "identified company personnel, both current and past, including certain non-executive directors."
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