Man Industries Shares Tank 16% After SEBI Bars Company, Top Officials From Securities Market For Two Years

Man Industries (India) Ltd. share price tanked over 16% during early trade on Tuesday after the Securities and Exchange Board of India barred the company and its three senior executives from accessing the securities markets for two years and imposed a fine of Rs 25 lakh on each of them for alleged financial misstatement.

Those penalised include Chairman Ramesh Mansukhani, Executicve Director Nikhil Mansukhani and former ED current CFO Ashok Gupta, according to an order passed by SEBI.

In its order, SEBI noted that the financial statements of Man Industries for the financial years 2015-16 to 2020-21 were "deliberately misstated".

According to the market regulator, the misrepresentations, omissions, and concealments formed part of a scheme by which investors were deprived of the true financial picture of the company.

SEBI highlighted that MSPL, a wholly-owned subsidiary, was excluded from consolidation after FY15 without any explanation. This concealment, the order stated, suppressed group-level losses and liabilities while artificially inflating MIIL's profits.

"The penalty is minimal in nature when compared to the size and operations of the company and has no impact on the day-to-day functioning of the business," Man Industries said in a statement. "The company is examining the order in detail and will seek appropriate legal remedies available against the said order," it added.

Man Industries shares dropped as much as 16.4% to Rs 340, the lowest since May. The benchmark Nifty 50 was up 0.1%. The total traded volume was 143 times the 30-day average. The relative strength index was 30.

The stock has been flat for the last 12 months but risen nearly 10% on a year-to-date basis.